Nokia Cuts Guidance After Seeing EUR200 Million Sales Hit From Coronavirus
April 30 2020 - 2:16AM
Dow Jones News
By Dominic Chopping
Nokia Corp. (NOK) on Thursday cut full-year guidance amid
uncertainty caused by coronavirus and said the pandemic hit sales
in the first quarter by 200 million euros ($217 million).
The hit to sales was mainly due to supply-chain issues and these
sales are expected to be booked later in the year, rather than
being lost altogether, it said.
The company's adjusted net profit for the three-month period
ended Mar. 31 was 32 million euros ($34.7 million), compared with a
loss of EUR118 million a year earlier. Analysts polled by FactSet
had expected a net profit of EUR37 million.
On a nonadjusted basis, Nokia reported a net loss of EUR117
million against a loss of EUR186 million expected.
Sales for the quarter fell 2.4% to EUR4.91 billion, against
EUR5.15 billion expected.
The company now expects 2020 adjusted earnings per share of
EUR0.23 plus or minus 5 cents, from an earlier estimate of EUR0.25,
with an adjusted operating margin of 9.0% plus or minus 1.5
percentage points from 9.5% previously.
"We expect the majority of this Covid-19 impact to be in 2Q and
believe that our industry is fairly resilient to the crisis,
although not immune," said Chief Executive Rajeev Suri.
"We did not see a decline in demand in the first quarter. As the
COVID-19 situation develops, however, an increase in supply and
delivery challenges in a number of countries is possible and some
customers may reassess their spending plans," he said.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
April 30, 2020 02:01 ET (06:01 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Nokia (NYSE:NOK)
Historical Stock Chart
From Mar 2024 to Apr 2024
Nokia (NYSE:NOK)
Historical Stock Chart
From Apr 2023 to Apr 2024