Nokia reported net sales in Q1 2018 were EUR 4.9 billion, down from EUR 5.4 bn in Q1 2017. On a constant currency basis, net sales would have been flat year-on-year. Non-IFRS diluted EPS in Q1 2018 was EUR 0.02.
- Nokia’s Networks business net sales were EUR 4.3bn, with operating profit of EUR 43mn
- Q1 net sales and profitability were impacted primarily by lower net sales in North America. However, order intake and backlog were excellent in Q1. Therefore, Nokia expects the net sales trajectory in North America, as well as profitability, to improve significantly in the second half of 2018.
- Based on firm orders, Nokia sees customer demand for 5G accelerating further, particularly in North America, where we expect commercial 5G network deployments to begin near the end of 2018.
Rajeev Suri, Nokia’s president and CEO, stated: “We also see a clear path to market share gains this year given our success in 4G expansion, 5G deals, IP routing in both the service provider segment and adjacent markets, and optical, driven by 5G and webscale customers. While our Networks gross margin in Q1 decreased on a year-on-year basis, the primary underlying reasons for that – regional and product mix – are largely temporary in nature and expected to improve in the second half
of 2018. It is also important to understand that we did not see significant degradation of margins at the overall product level. We remain on track to deliver on our EUR 1.2 billion cost savings commitment.”
