Monday. 04.03.2024

Problems related to Russia's invasion of Ukraine and ongoing supply chain issues weighed on Finnish communications company Nokia in the first quarter, with profits down on the year.

The company reported a 17% decline in profits, to €219 million ($231.9 million), compared to €263 million in the same quarter a year ago.

But the company said it was satisfied with the result.

"Overall, Q1 was a strong start for the year both in terms of net sales and profitability," said president and chief executive Pekka Lundmark.

"The demand environment remains strong and, while supply chain and inflation challenges remain, we are confident we can deliver our 2022 outlook and continue to make good progress towards our long-term targets."

Earnings per share were €0.04, down 20% from €0.05 a year ago.

Comparable profit was €416 million, or €0.07 per share, compared to €375 million, or €0.07 per share last year.

Net sales growth

Net sales grew 5% to €5.35 billion, from last year's €5.08 billion. Net sales grew 1% in constant currency.

Network Infrastructure grew 9% in constant currency, while Mobile Networks declined 4% in constant currency due to supply chain constraints, while demand remains strong.

Nokia Technologies declined 17% in constant currency as licenses that expired in 2021 have not yet renewed. Further, full year 2022 outlook is unchanged in constant currency, expecting sales of €22.9 billion, to €24.1 billion.

The comparable operating margin is expected between 11% and 13.5%.

Nokia first quarter profits down, net sales rise