network devices Nokia’s difficulties have hardly eased in April-June.
The company has difficulties of the fifth generation (5g) in mobile phone technology, and the coronavirus pandemic is likely to have added to the problems anyway. Nokia will publish its interim report on Friday at 8 p.m.
Investors estimate that Nokia’s net sales in April – June would have been EUR 5.3 billion and operating profit excluding non-recurring items EUR 304 million. In the same period last year, net sales were EUR 5.8 billion and operating profit was EUR 451 million.
If the estimates are correct, Nokia’s net sales would have decreased by 7 percent and operating profit by 33 percent from the same period last year. In the interim report, the focus is mainly on what the company says about its progress in 5g technology and the market in general.
Early estimates on the basis of Nokia would be lagging behind in profitability its Swedish competitor Ericsson. Its net sales in April – June were SEK 55.6 billion, or EUR 5.2 billion, and operating profit excluding non-recurring items was SEK 4.5 billion, or EUR 423 million.
The interim report, which will be published on Friday, is also the last one that Rajeev Suri presents as the company’s CEO. In early August, the CEO will start Pekka Lundmark, who will take over as CEO of Nokia energy company Fortum.
The CFO will also change at the beginning of September: the company Wärtsilä, Marco Wirén.
extra instability in the network equipment market has also been caused by trade policy.
The United States has vigorously attacked Huawei, the largest company in the industry, and many states are evicting it from the networks of telecom operators, according to news agency Reuters.