Citing weaker demand due tp both the macro-economic environment and customers’ inventory digestion, Nokia lowered its financial outlook based on preliminary Q2 results, saying its now expects to report net sales of approximately EUR 5.7 billion, flat year-on-year on a constant currency basis with a comparable operating margin of approximately 11%. Nokia’s operating profit in Q2 benefitted from approximately EUR 80 million related to catch-up net sales in Nokia Technologies.
Nokia is lowering its full year net sales outlook to a range of EUR 23.2 billion to EUR 24.6 billion (previously EUR 24.6 billion to 26.2 billion) and narrowing its comparable operating margin range outlook to 11.5% to 13% (previously 11.5% to 14%). The changes are related to Nokia’s Network Infrastructure and Mobile Networks business groups.
Nokia said its 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. There is also inventory normalization happening at customers after the supply chain challenges of the past two years.
Nokia will release its second quarter and half year 2023 financial results on Thursday 20 July 2023.
