Nokia sees double-digit fall in Q2 profit, sales in weak 5G market but sees improved 2nd half
The Espoo, Finland-based company reported a net profit of 328 million euros (USD 359 million) for the April-June period, down 20 per cent from 409 million euros (USD 447 million) a year earlier.
Wireless and fixed-network equipment maker Nokia Thursday reported a double-digit fall in profit and sales in the second quarter due to a continuing weak market as clients are holding off investments in 5G technology.
The Espoo, Finland-based company reported a net profit of 328 million euros (USD 359 million) for the April-June period, down 20 per cent from 409 million euros (USD 447 million) a year earlier.
Net income attributable to shareholders was 325 million euros (USD 355 million), down from 410 million euros a year earlier.
Similarly to its Nordic rival Ericsson of Sweden, Nokia has suffered in the past year from operators cutting back on investments into 5G and other telecom technology because of economic uncertainty and high financing costs.
“Our financial performance in the second quarter continued to be impacted by the ongoing market weakness with net sales declining 18 per cent year-on-year in constant currency,” Nokia CEO Pekka Lundmark said in a statement.
Nokia's sales were down 18 per cent at 4.5 billion euros (USD 4.9 billion) compared with 5.4 billion euros (USD 5.9 billion) a year earlier.
The Finnish company is one of the world's main suppliers of 5G, the latest generation of broadband technology along with Ericsson, China's Huawei and South Korea's Samsung.
Lundmark said that the company's sales would improve in the second half of this year, particularly in its network infrastructure business unit.
“Looking forward, we believe the industry is stabilizing and given the order intake seen in recent quarters we expect a significant acceleration in net sales growth in the second half,” he said.
However, in Nokia's mobile network unit, the biggest business entity during the quarter by sales, “the market dynamic remains challenging as operators continue to be cautious” of spending in 5G technology and equipment, Lundmark said.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
Retirement Planning: In how many years your Rs 25K monthly SIP investment will grow to Rs 8.8 cr | See calculations
Top 5 Small Cap Mutual Funds with best SIP returns in 1 year: See how Rs 25,000 monthly investment has grown in each scheme
Top 7 SBI Mutual Funds With Best SIP Returns in 1 Year: Rs 25,000 monthly SIP investment in No.1 fund has jumped to Rs 3,58,404
SBI 5-Year FD vs MIS: Which can offer higher returns on a Rs 2,00,000 investment over 5 years? See calculations
04:29 PM IST