Nokia’s CEO Remains Optimistic Despite Lower Than Expected First Quarter Results

In the January-March period, Nokia reported a net profit of 501 million euros, which was below analysts’ expectations. The revenue from sales fell by 20% to 4.7 billion euros. Despite this, CEO Pekka Lundmark expressed confidence in a stronger performance in the second half of the year and reaffirmed the company’s full-year outlook.

Lundmark attributed the decline in sales to ongoing weakness in the telecom equipment market, where operators are hesitant to invest in 5G and other technologies due to economic uncertainty and high financing costs. However, he emphasized that Nokia is well-positioned for growth as it is a major player in the 5G market and expects its Network Infrastructure unit to return to growth for the full year 2024.

Nokia faced similar challenges as its Nordic rival Ericsson, who also reported a drop in sales in the first quarter. However, Lundmark highlighted that Nokia’s mobile network unit experienced a decline in spending on 5G technology in North America and India, which impacted its performance in the first quarter. Despite these challenges, he emphasized that Nokia’s focus on improving order intake and achieving a turnaround in sales growth for the remainder of the year will drive its success.