Keystone-SDA
The Finnish telecommunications equipment supplier Nokia announced Thursday that the weakness of the dollar had greatly lowered its operating profit in the second quarter, its turnover displaying an increase of 2%.
(Keystone-ATS) The operating profit reached 81 million euros (75 million francs), down 81%, said the group.
“This development is explained by the negative impact of 50 million euros in the venture capital fund, which includes a negative reassessment of 60 million euros linked to exchange rates. The operating result was also affected by customs duties, “said Nokia in her press release.
The group had announced on Tuesday that it saw its prospects for 2025 due to the impact of the low dollar and customs duties, the group achieving approximately 30% of its turnover in North America where Donald Trump has noted the rights to imports.
Net profit reached 96 million euros, against a loss of 142 million euros a year earlier which was explained by a heavy load of depreciation.
The turnover increased by 2% to 4.55 billion euros in the second quarter. Sales of the mobile networks segment fell in particular 13% due to an exceptional business contribution last year and the “projects calendar” in India, unfavorable this year. On the geographical level, sales, however, increased by 6% in the Europe/Near East/Africa area.
Excluding customs duties and foreign exchange effects, “we are planning better performance in the second half, especially in the fourth quarter, in accordance with the usual seasonality,” said Nokia Director Justin Hotard quoted in the press release.
“However, we are confronted with two unfavorable factors for our operating profit prospects for the entire financial year, which are independent of our will: exchange rates, due to the weakness of the US dollar, and customs duties,” he recalled.
Annual operating profit is now planned between 1.6 and 2.1 billion euros, compared to 1.9 to 2.4 billion previously due to these two factors.
