<p>Finnish telecommunications equipment provider Nokia said Friday it had returned to profit in the second quarter and hiked its 2020 forecasts, despite a drop in sales due to the <a href="https://www.deccanherald.com/coronavirus-live-news-covid-19-latest-updates.html" target="_blank">coronavirus</a> pandemic.</p>.<p>Net profit came in at 94 million euros ($112 million) compared to a loss of 193 million euros during April-June last year.</p>.<p>The result was still far below the analyst consensus of a profit of 142 million euros compiled by Factset.</p>.<p>"Nokia delivered a strong improvement in Q2, with better-than-expected profitability, significant improvement in cash generation, clear indications of a return to strength in mobile radio, and a year-on-year increase in earnings-per-share, despite the challenges of Covid-19.</p>.<p><a href="https://www.deccanherald.com/national/coronavirus-news-live-updates-kerala-andhra-karnataka-report-highest-spike-in-covid-19-cases-indias-tally-tops-1274l-864013.html" target="_blank"><strong>For latest updates and live news on coronavirus, click here</strong></a></p>.<p>Sales fell by 10.6 percent to five billion euros, with Nokia estimating the impact from the coronavirus pandemic at 300 million euros.</p>.<p>"We expect that the majority of sales missed in the quarter due to Covid-19 will shift to future periods," said Suri.</p>.<p>The company managed to increase its operating margin to 8.3 percent from 7.9 percent one year ago, using a method that is not compliant with international accounting rules.</p>.<p>For this year it now aims to increase this measure to 9.5 percent, compared to an earlier forecast of 9.0 percent, with cash flow now clearly positive.</p>.<p>Nokia has faced more difficulties than its competitors Huawei and Ericsson in establishing itself in the market for 5G mobile network equipment.</p>.<p>It reported signing 83 contracts for 5G network equipment.</p>.<p>Sweden's Ericsson said earlier this month it had signed a total of 99 contracts for 5G network equipment.</p>.<p>Nokia's shares shot more than 14 percent higher approaching midday in Helsinki, where the market was up 2.4 percent overall.</p>
<p>Finnish telecommunications equipment provider Nokia said Friday it had returned to profit in the second quarter and hiked its 2020 forecasts, despite a drop in sales due to the <a href="https://www.deccanherald.com/coronavirus-live-news-covid-19-latest-updates.html" target="_blank">coronavirus</a> pandemic.</p>.<p>Net profit came in at 94 million euros ($112 million) compared to a loss of 193 million euros during April-June last year.</p>.<p>The result was still far below the analyst consensus of a profit of 142 million euros compiled by Factset.</p>.<p>"Nokia delivered a strong improvement in Q2, with better-than-expected profitability, significant improvement in cash generation, clear indications of a return to strength in mobile radio, and a year-on-year increase in earnings-per-share, despite the challenges of Covid-19.</p>.<p><a href="https://www.deccanherald.com/national/coronavirus-news-live-updates-kerala-andhra-karnataka-report-highest-spike-in-covid-19-cases-indias-tally-tops-1274l-864013.html" target="_blank"><strong>For latest updates and live news on coronavirus, click here</strong></a></p>.<p>Sales fell by 10.6 percent to five billion euros, with Nokia estimating the impact from the coronavirus pandemic at 300 million euros.</p>.<p>"We expect that the majority of sales missed in the quarter due to Covid-19 will shift to future periods," said Suri.</p>.<p>The company managed to increase its operating margin to 8.3 percent from 7.9 percent one year ago, using a method that is not compliant with international accounting rules.</p>.<p>For this year it now aims to increase this measure to 9.5 percent, compared to an earlier forecast of 9.0 percent, with cash flow now clearly positive.</p>.<p>Nokia has faced more difficulties than its competitors Huawei and Ericsson in establishing itself in the market for 5G mobile network equipment.</p>.<p>It reported signing 83 contracts for 5G network equipment.</p>.<p>Sweden's Ericsson said earlier this month it had signed a total of 99 contracts for 5G network equipment.</p>.<p>Nokia's shares shot more than 14 percent higher approaching midday in Helsinki, where the market was up 2.4 percent overall.</p>