Nokia Falls to Surprise Loss
May 10 2016 - 2:40AM
Dow Jones News
Nokia Corp. on Tuesday reported first-quarter earnings below
expectations due to sluggish mobile network sales, as the Finnish
network equipment maker for the first time reported results as a
combined company with Alcatel-Lucent.
For the three months ended in March, Nokia reported a net loss
of €513 million ($583.46 million) compared with a €177 million
profit a year earlier, as a standalone company. Nokia said net
profit was at €139 million when costs related to the Alcatel-Lucent
transaction, among others, were excluded.
Nokia's first-quarter revenue amounted to €5.6 billion, up from
€3.20 billion in the year-earlier period.
Analysts polled by FactSet expected net profit of €237 million
and revenue of €5.73 billion.
The first quarter marks the first one for Nokia as a combined
company with Alcatel-Lucent, which $16.6 billion acquisition Nokia
completed in January.
Nokia said the results were due to sluggish demand for mobile
broadband equipment, as last-generation network equipment rollouts
in China and some other markets are slowing.
Nokia's network business noted a 8% decrease in net sales
compared with the same period last year, the company said.
"The shortfall was largely driven by Mobile Networks, where the
challenging environment is not a surprise," said Nokia Chairman and
Chief Executive Rajeev Suri.
Write to Matthias Verbergt at Matthias.Verbergt@wsj.com
(END) Dow Jones Newswires
May 10, 2016 02:25 ET (06:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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