Nokia Forecasts Lower Profit Margins on Network Slump
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Nokia Oyj predicted shrinking profit margins for its network-equipment business, signaling the company is ready to sacrifice earnings to revive sales after handing its mobile-phone division to Microsoft Corp. The stock plunged.
Operating profit at the network unit, excluding some costs, will drop to 1 percent to 9 percent of sales this quarter from 11.2 percent during the previous three months, Espoo, Finland-based Nokia said today. Sami Sarkamies, an analyst at Nordea Bank AB in Helsinki, had estimated 7.6 percent.