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Nokia shares fell almost 10% on the day

14. 07. 2023 Friday / By: Robert Denes / Business / Exact time: BST / Print this page

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N okia revised down its sales forecast for 2023 in response to weaker demand in the second half of the year due to the macroeconomic environment due to high inflation and rising growth. eating into interest rates and customer inventory.

Specifically, Nokia now expects full-year net sales to be in the range of €23.2-24.6 billion, up from its previous estimate of €24.6-26.2 billion, while also raising its outlook for operating profit margins to a range of 11.5 reduced it. % and 13% from the previous 11.5% to 14%.

The multinational company, according to which the changes are related to the Nokia Network Infrastructure and Mobile Networks businesses, indicated that the weaker demand outlook for the second half of the year is due to both the macroeconomic environment and the consumption of customer inventories.

"Customer spending plans are increasingly affected by high inflation and rising interest rates, and some projects are now being pushed back to 2024, particularly in North America," he explained.

Also, the multinational company, which published its second quarter report on July 20, announced that, based on preliminary financial data, it expects net sales of approximately EUR 5,700 million, which means flat annual behavior. at an unchanged exchange rate compared to last year, with a similar operating profit margin of approximately 11%.

"Nokia is proactively managing costs to protect profitability. Going through this uncertain period, Nokia will continue to take steps to ensure that it continues to grow faster than the market and achieve a comparable operating margin of at least 14 percent as it moves towards its long-term goals," said the company.

Nokia shares fell 9.97% on the Helsinki Stock Exchange after the company's announcement.

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