BUSINESS-ECONOMY
While a leading global supplier of 5G, the latest generation of broadband technology, along with Ericsson, China's Huawei, and South Korea's Samsung, more sales are expected by Nokia in the second half, more so in its business unit of network infrastructure. Hiking through clients' reluctance over investments in 5G technology, Nokia reported a sharp drop in both profit and sales for the second quarter. The Espoo, Finland-based company says net profit tailed down to 328 million euros ($359 million) for the April−June period from 409 million euros ($447 million) a year earlier. Net income attributable to shareholders also dropped to 325 million euros ($355 million) from 410 million euros. Like its Nordic rival Ericsson of Sweden, Nokia has had a rough year since investors cut back on investments in 5G and other telecom technologies because of economic uncertainty and high finance charges. “Our financial performance in the second quarter continued to be impacted by the ongoing market weakness with net sales declining 18 per cent year-on-year in constant currency,” Nokia CEO Pekka Lundmark said in a statement. Nokia’s sales were down 18 per cent at 4.5 billion euros ($4.9 billion) compared with 5.4 billion euros ($5.9 billion) a year earlier. While a leading global supplier of 5G, the latest generation of broadband technology, along with Ericsson, China's Huawei, and South Korea's Samsung, more sales are expected by Nokia in the second half, more so in its business unit of network infrastructure. “Looking forward, we believe the industry is stabilising and given the order intake seen in recent quarters we expect a significant acceleration in net sales growth in the second half,” he said. However, Nokia's most critical business unit in terms of revenue for the quarter—its mobile network—remains in far less favourable circumstances. "The market dynamic remains challenging as operators continue to be cautious" of spending on 5G technology and equipment, said Nokia CEO Pekka Lundmark. None
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