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Dow Jones Newswires

April 28, 2022, 3:22 a.m. EDT

Nokia backs full-year guidance as first-quarter profit tops estimates

By Dominic Chopping

Nokia Corp. on Thursday posted a forecast-beating first-quarter net profit as demand for mobile networks remains strong, but cautioned that supply-chain constraints continued to hurt sales, in addition to the timing of patent licensing renewals.

The supply situation remains constrained but Nokia (NYS:NOK) (HEL:FI:NOKIA) said it expects to deliver sales growth in mobile networks in 2022 due to improved competitiveness.

Europe and Latin America had good growth in mobile networks, while sales in North America and greater China declined, it added.

The company’s comparable net profit for the quarter rose to 409 million euros ($433.2 million) from EUR373 million a year earlier. Sales rose 5.4% to EUR5.35 billion, it said.

Analysts polled by FactSet had expected comparable net profit of EUR340 million on sales of EUR5.27 billion.

On a reported basis, Nokia posted a net profit of EUR212 million from EUR261 million a year earlier, it said.

“Overall, 1Q was a strong start for the year both in terms of net sales and profitability,” Chief Executive Pekka Lundmark said.

“The demand environment remains strong and while supply chain and inflation challenges remain, we are confident we can deliver our 2022 outlook and continue to make good progress towards our long-term targets,” he said.

Write to Dominic Chopping at dominic.chopping@wsj.com

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