Nokia cuts full-year profit forecast, announces new strategy

STOCKHOLM/HELSINKI: Nokia cut its full-year profit forecast on Thursday even as the telecom network equipment maker’s quarterly underlying profit met expectations in its first earnings under new CEO Pekka Lundmark.

The Finnish firm also announced a new strategy under which it will have four business groups: mobile networks, IP and fixed networks, cloud and network services and Nokia technologies, from January.

It lowered its full-year profit outlook range by 0.02 euros to a midpoint of 0.23 euros per share.

“We expect to stabilise our financial performance in 2021 and deliver progressive improvement towards our long-term goal after that,” Lundmark said in a statement.

The company expects to underperform its primary addressable market, excluding China, in 2020 in its networks and software businesses. It had earlier expected to slightly underperform.