Technology

Nokia plans to raise full-year outlook as business picks up in second quarter

Telecom equipment maker had been struggling against Nordic rival Ericsson

Photograph: iStock

Tue Jul 13 2021 - 09:01

Nokia said on Tuesday it expects to raise its full-year outlook as business picked up pace in the second quarter.

"Our first half performance has shown evidence of this in good cost control and also benefited from strength in a number of our end markets," CEO Pekka Lundmark said in a statement.

The telecom equipment maker, which will provide the new outlook on July 29th while reporting second-quarter results, had earlier projected 2021 net sales of between €20.6 billion and €21.8 billion.

Nokia had been struggling against Nordic rival Ericsson as product missteps in the early stages of 5G hampered growth and led to changes in its top management.

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But under the management of Pekka Lundmark, Nokia has been regaining lost ground by making changes in its operating model, cutting costs, laying off thousands of employees and forging new partnerships with technology and telecom companies.

Nokia, which in April posted better-than-expected quarterly results, had also forecast operating margin of between 7 per cent and 10 per cent.

"The market is already close to the top of the guidance in both revenue and margin," said OP analyst Kimmo Stenvall. "Nokia has just hosted a capital markets day and issued long-term targets/guidance and now had two very strong quarters."

The company also got a boost as the retreat of Huawei from several European markets gave it access to newer markets and a tussle between the Swedish government and Huawei will likely see Nokia getting more 5G business in China later this year. – Reuters

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