By Dominic Chopping
Nokia on Friday lowered its full-year net sales guidance and narrowed its operating margin outlook amid a weaker demand picture in its network infrastructure and mobile networks businesses due to a tougher macroeconomic environment and as customers work through built-up inventory.
The Finnish telecommunications-equipment company now sees sales of between 23.2 billion euros and 24.6 billion euros ($26.05 billion-$27.62 billion) from EUR24.6 billion to EUR26.2 billion previously.
The comparable operating margin is seen at 11.5% to 13% from 11.5% to 14% previously.
“Customer spending plans are increasingly impacted by high inflation and rising interest rates along with some projects now slipping to 2024–notably in North America,” Nokia said.
“There is also inventory normalization happening at customers after the supply chain challenges of the past two years.”
Ahead of the company’s second-quarter earnings on July 20, Nokia also reported preliminary net sales of around EUR5.7 billion for the three-month period and a comparable operating margin of around 11%, with operating profit boosted by EUR80 million related to catch-up payments in its technologies unit.
The company said it will continue to take measures to ensure it remains on track towards its long-term targets of growing faster than the market and delivering a comparable operating margin of at least 14%.
Write to Dominic Chopping at [email protected]
Read the full article here
