Interim reports Nokia’s business is expected to develop steadily – the company is also expected to outperform its Swedish competitor

The company will publish its January-March interim report on Thursday at 8 a.m.

Investors predict that Nokia’s network equipment business will develop steadily in the first half of the year, although they expect the company’s profitability to decline.

The interim report, which will be released on Thursday at 8 a.m., is likely to focus on what the company says about the component shortage that may have been exacerbated by Russia’s invasion of Ukraine.

Already in the previous quarter, Nokia said sales could have been slightly higher without a shortage of components. As a result, net sales shifted somewhat from the end of last year to the current year.

The average According to the forecast, Nokia’s net sales in January – March were EUR 5.3 billion and operating profit excluding non-recurring items was EUR 519 million.

According to the forecast, net sales would have increased by almost four percent, but operating profit decreased by six percent from the same period last year.

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Analysts believe the company’s net cash and short-term investments increased to EUR 4.7 billion in the first half of the year. That would be EUR 1 billion more than a year ago in the same period.

Last The year marked a major change in Nokia after a long period of problems, as the market position of all business areas has strengthened.

This shows in particular that the company has succeeded in improving its competitiveness in fifth generation (5g) mobile network technology.

Nokia has significantly increased its investment in product development and simplified its operations and organization to stay ahead of its competitors in 5g technology.

According to forecasts, Nokia’s profitability was better in the first half of the year than its Swedish competitor Ericsson. Its net sales for the first half of the year were SEK 55.1 billion, or EUR 5.3 billion, and operating profit excluding non-recurring items was SEK 4.8 billion, or EUR 458 million.

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Two a week ago, Nokia announced to close down its business in Russia because of the war of aggression.

At the same time, the company announced that the decision will not have a significant financial impact, as Russia accounted for less than 2 percent of net sales last year.

A competitor, Ericsson, has also decided to suspend its operations in Russia.

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