Nokia cuts sales and profit forecast

Nokia cuts sales and profit forecast

Nokia trimmed its sales and profit forecast for 2023 blaming a tightening economic landscape for cutting customer budgets.

In a statement, Nokia announced it will lower its net sales outlook from €24.6 billion - €26.2 billion to €23.2 billion - €24.6 billion. Operating margin range had been cut from 11.5% - 14% to 11.5% - 13%.

The Finnish vendor said there is weaker customer demand in H2 due to the “macro-economic environment and customers’ inventory digestion”. Customer budgets have been hit by high inflation and rising interest rates, resulting in some projects being pushed to 2024, particularly in North America. Also being blamed was inventory normalisation from customers after supply chain challenges in the last two years.

Nokia predicted it will report net sales of around €5.7 billion and an operating margin of 11% in Q2. Its operating profit in Q2 benefitted from approximately EUR 80 million related to catch-up net sales in Nokia Technologies.

The vendor stated it has been “proactively managing costs to protect profitability” due to this period of “uncertainty”, to remain on track to growth and an operating margin of 14%.

Sign-up to our weekly newsletter

Keep up-to-date with all the latest news, articles, event and product updates posted on Developing Telecoms.
Subscribe to our FREE weekly email newsletters for the latest telecom info in developing and emerging markets globally.
Sending occasional e-mail from 3rd parties about industry white papers, online and live events relevant to subscribers helps us fund this website and free weekly newsletter. We never sell your personal data. Click here to view our privacy policy.