Nokia makes small profit in face of supply disruption

Nokia Oyj eked out a small profit in the first quarter, backed by demand for its new high-margin 5G telecoms equipment, and predicted a strong second half of the year, sending its shares higher.

The Finnish company said the bulk of the coronavirus impact will be felt in the current quarter. Its revenue slipped 2% in the first three months of the year as it took a hit of about 200 million euros ($217 million) largely because the pandemic disrupted supply from operations in China.

Nokia, battling with China’s Huawei and Sweden’s Ericsson, is trying to strengthen its 5G slate and looking especially to deployment by U.S. telecom companies for growth.