Nokia cuts profit forecast, announces new strategy

Nokia cuts full-year profit forecast, announces new strategy

The company lowered its full-year profit outlook range by 0.02 euros to a midpoint of 0.23 euros per share

A Nokia logo is seen at the company's headquarters in Espoo, Finland. Credit: Reuters Photo

Finnish telecom network equipment maker Nokia cut its full-year profit forecast on Thursday even as its quarterly underlying profit met expectations in the company's first earnings report under new Chief Executive Pekka Lundmark.

Nokia also announced a new strategy under which it will have four business groups: mobile networks, IP and fixed networks, cloud and network services and Nokia technologies, effective January 1, 2021.

The company lowered its full-year profit outlook range by 0.02 euros to a midpoint of 0.23 euros per share.

Nokia and its Nordic rival Ericsson have been gaining more customers as more telecom operators start rolling out 5G networks and China's Huawei is increasingly shunned out by several governments over security concerns.

Nokia, however, suffered a setback in the third quarter when it lost out to Samsung Electronics on a part of a contract to supply 5G equipment to Verizon.

Quarterly revenue fell seven per cent to 5.44 billion euros, below a consensus figure of 6.30 billion, Refinitiv Eikon data showed.

Nokia said its July-September underlying earnings were flat year-over-year at 0.05 euros per share, meeting the 0.05 euros consensus in a Refinitiv poll.