By Steve Goldstein
Shares of Nokia /zigman2/quotes/203672305/delayed FI:NOKIA -1.11% /zigman2/quotes/207421390/composite NOK -4.02% slumped 17% in Helsinki, after the telecom equipment maker lowered its 2020 guidance and introduced 2021 margin guidance below market expectations.
Nokia said its third-quarter profit more than doubled to €203 million, while sales fell 7% to €5.29 billion. On an adjusted basis, Nokia’s earnings per share was steady at 5 eurocents.
Nokia lowered its 2020 adjusted earnings view to 23 cents from 25 cents, and its operating margin view to 9% from 9.5%. It expects 2021 adjusted operating margins between 7% and 10%, below consensus expectations of nearly 11%.
” We have lost share at one large North American customer, see some margin pressure in that market, and believe we need to further increase R&D [research and development] investments to ensure leadership in 5G,” said Pekka Lundmark, who completed his first quarter as chief executive.
Nokia also announced a new corporate structure.