Nokia cuts full-year profit forecast, announces new strategy

In this news, we discuss the Nokia cuts full-year profit forecast, announces new strategy.

STOCKHOLM / HELSINKI (Reuters) – Finnish telecommunications network equipment maker Nokia NOKIA.HE on Thursday cut its profit forecast for the year, even as its quarterly underlying profit met expectations in the first report on the company’s results under the leadership of new Managing Director Pekka Lundmark.

Nokia has also announced a new strategy under which it will have four business groups: mobile networks, IP and fixed networks, cloud and network services and Nokia technologies, effective January 1, 2021.

The company lowered its range of full-year earnings outlook from 0.02 euro to a midpoint of 0.23 euro per share.

Nokia and Nordic Rival Ericsson ERICb.ST Gain More Customers As More Telecom Operators Begin Deploying 5G Networks and China’s Huawei [HWT.UL] is increasingly rejected by several governments for security reasons.

Nokia, however, suffered a setback in the third quarter by losing to Samsung Electronics 005930.KS in a contract to supply 5G equipment to Verizon VZ.N.

Quarterly revenue fell 7% to 5.44 billion euros, below a consensus figure of 6.30 billion, according to data from Refinitiv Eikon.

Nokia said its operating profit from July to September was stable year-over-year at $ 0.05 per share, reaching the consensus of $ 0.05 in a Refinitiv poll.

Reporting by Supantha Mukherjee in Stockholm and Anne Kauranen in Helsinki; Editing by Tom Hogue, Aditya Soni

Original © Thomson Reuters Corporation

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