Finnish telecom gear maker Nokia reported on Thursday a smaller-than-expected rise in quarterly profit as sales tumbled because operators bought less 5G technology, but said it expected a sales pick-up this year.
A fall in demand for 5G equipment in North America, the largest market for Nokia and rival Ericsson, and market share losses in China have forced both to temper expectations and lay off thousands of employees to shed costs.
The Finnish group posted a first-quarter operating profit, excluding certain items of income and expenses, and helped by cost cuts, of 597 million euros, up from a year-earlier 479 million, as constant-currency sales fell 19%.
CEO Pekka Lundmark said an improvement in order intake seen late last year continued in the first quarter despite a persistent challenging business environment.
“While we are conscious of the broader economic environment, considering the ongoing order intake strength, we expect Network Infrastructure will return to net sales growth for full year 2024 with a stronger second half performance,” he said
Nokia on Thursday repeated an outlook given in January for a comparable operating profit in 2024 of 2.3-2.9 billion euros.
“We remain confident in a stronger second half and achieving our full year outlook,” Lundmark said.
Moreover, Nokia’s optimistic outlook for the second half underscores its confidence in its products and services. With a focus on innovation and customer satisfaction, Nokia aims to sustain its momentum and drive growth. By leveraging its strengths and strategic partnerships, Nokia positions itself for success in the dynamic telecommunications market.
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