Nokia reports weaker demand for telco equipment
Nokia will present its Q2 financial report on July 20, and some insider information sheds light on what the report will look like. Nokia’s share price has not looked good in recent months, and after Nokia announced it would cut net sales and lower its 2023 operating margin guidance, the share price fell 10% from €3.9 to €3.45. Nokia was expecting net sales of €26.2 billion in 2023; instead, the company now expects sales of €24.6 billion.
The Finns said expected net sales should be around €5.7 billion, flat year-on-year and an operating margin of around 11%. Q2 profit benefited from about EUR80 million from Nokia Technologies net sales.
Nokia said the weaker demand outlook in the second half of the year was due to both the macroeconomic environment and customer destocking. Declining demand for telecommunications equipment affected not only Nokia but also Ericsson. Ericsson’s profit fell 62% to 271 million, and the main reason was lower spending by operator customers, especially in North America.
