Nokia Targets Double-Digit Operating Margins in 2023
March 18 2021 - 3:19AM
Dow Jones News
By Dominic Chopping
Nokia Corp. said that it expects to deliver double-digit
comparable operating margins in 2023 as it set out a three-phased
strategy ahead of its capital markets day Thursday.
The telecom-equipment maker said it expects currency adjusted
sales in 2023 to grow faster than the market, with a comparable
operating margin of 10%-13%.
In 2021, Nokia still sees adjusted sales of between 20.6 billion
euros and 21.8 billion euros ($24.6 million-$26 million) and a
comparable operating margin of 7%-10%.
The company highlighted three phases that it hopes will deliver
above market growth going forward. The first phase includes its
continuing reset, focusing on technology leadership, implementing
its new operating model and resetting its cost base.
From 2022 onward, Nokia said it will accelerate competitiveness
and aims to grow margins through enhanced technology leadership,
digitalization and capturing emerging opportunities.
It then plans to scale up to drive growth in new use cases in
order to grow faster than the market.
Between 2020 and 2023, Nokia said it expects its total estimated
addressable market to grow at a compounded annual growth rate of
approximately 1%.
"5G is still in its early phase," said Chief Executive Pekka
Lundmark.
"We estimate that the peak of the 5G market will last roughly
twice as long as it did with 4G."
Nokia also updated its dividend policy, targeting recurring,
stable and over time growing ordinary dividend payments, taking
into account the previous year's earnings as well as the company's
financial position and business outlook.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
March 18, 2021 03:04 ET (07:04 GMT)
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