NOK Nokia Corp

   By Dominic Chopping 
 

Nokia Corp. on Thursday backed guidance after posting a forecast-beating rise in first-quarter net profit, driven by higher sales of its 5G network equipment.

The company's adjusted net profit for the quarter rose to 373 million euros ($450.9 million) from EUR32 million a year earlier, as sales rose 3.3% to EUR5.08 billion. Analysts polled by FactSet had expected adjusted net profit of EUR90 million on sales of EUR4.75 billion.

On a reported basis, Nokia swung to a net profit EUR261 million, it said.

The company backed 2021 guidance for an adjusted operating margin of 7%-10%, but said the solid first quarter provides a good foundation for achieving the higher end of the range.

"I was particularly pleased by strong sales growth across our Network Infrastructure business group driven by increasing demand for next generation connectivity; good progress in Mobile Networks in securing full portfolio competitiveness; continued double-digit sales growth with our Enterprise customers; double-digit sales growth in North America; and good net sales development for Nokia Technologies," said Chief Executive Pekka Lundmark.

The company said it expects the typical quarterly earnings seasonality to be less pronounced in 2021, and it continues to monitor overall market developments including visibility for semiconductor availability. Nokia said it has continued to successfully deliver to customers during the global semiconductor shortage.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

April 29, 2021 02:13 ET (06:13 GMT)

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