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NOKIA REPORTS ‘BETTER THAN EXPECTED’ 2ND QUARTER PROFITS

Nokia's operating profit for April to June fell by 28 million euros compared to the same period last year but still did better than expected, according to figures in the company’s latest financial report, the Finnish news agency Yle reported on August 1, 2020. 

Outgoing CEO Rajeev Suri said Nokia’s Q2 profitability had exceeded expectations, despite the tough economic conditions of the recent period that saw it drop to 423 million euros from 451 million euros. "These results show that our execution has improved as planned and that we are well positioned to end the year with a significantly stronger financial position," Suri wrote. "As a result, we are adjusting upward both the midpoint of our full-year 2020 non-IFRS EPS and operating margin guidance within our previously disclosed outlook ranges." 


IFRS refers to the International Financial Reporting Standards, a standardized means of reporting a company’s financial performance and position so that statements are comparable across international boundaries. According to IFRS figures, Nokia made an operating profit of 170 million euros, compared to a loss of 57 million euros last year. Nokia also reported a decrease in net sales in the interim report, down to 5.1 billion euros from 5.7 billion euros last year. 


"Nokia-level revenue was down in the quarter, with the majority of that the result of COVID-19 as well as a sharp decline in China based on the prudent approach we have taken in that market," Suri wrote, adding that he expects the majority of sales missed during Q2 will be made up in future periods. This was Suri's last quarterly announcement as Nokia CEO before he is replaced by ex-Fortum boss Pekka Lundmark.


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