Nokia Posts Surprise Second-Quarter Profit Jump as Pekka Lundmark Is Poised to Take Over as CEO


Finnish telecom community tools maker Nokia reported an sudden rise in its second-quarter underlying revenue on Friday regardless of the COVID-19 disaster, whereas its new Chief Executive Officer Pekka Lundmark takes over this weekend.

Lagging behind its rivals China’s Huawei and Sweden’s Ericsson in 5G community gross sales, Nokia stated its April-June underlying earnings rose to EUR 0.06 per share from a revenue of EUR 0.05 a 12 months in the past, beating the EUR 0.03 consensus in a Refinitiv ballot.

Nokia, which had warned of a weak second quarter due to the virus, upgraded its forecast for 2020 underlying earnings per share to between EUR 0.2 and EUR 0.three from EUR 0.18 to EUR 0.28.

Its extra worthwhile Nordic peer Ericsson reported an increase in 5G community gross sales and software program income two weeks in the past, and in addition maintained its monetary targets for 2020 and 2022.

However, Nokia’s quarterly income fell 11 p.c to EUR 5.09 billion (roughly Rs. 45,071 crores), lacking the EUR 5.28 billion (roughly Rs. 46,755 crores) consensus determine, in accordance to Refinitiv knowledge.

Nokia-level income was down within the quarter, with the vast majority of that the results of COVID-19 as effectively as a pointy decline in China, its outgoing Chief Executive Officer Rajeev Suri stated in a press release.

The firm estimated that COVID-19 damage web gross sales by about EUR 500 million (roughly Rs. 4,428 crores) within the first half of the 12 months.

“We expect that the majority of sales missed in the quarter due to COVID-19 will shift to future periods,” Suri stated.

Suri, who steps down after greater than a decade in command of Nokia and Nokia Siemens Networks, leaves the corporate to his successor Pekka Lundmark with weak profitability in a extremely aggressive market state of affairs.

The management change at Nokia comes as turbulence prevails in European telecoms markets, with rising strain from sure governments for operators to exclude or restrict the utilization of 5G tools from China’s Huawei Technologies.

Lundmark, who takes over on Saturday, will staff up with new chairwoman Sari Baldauf.

© Thomson Reuters 2020

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