Nokia lowers 2025 profit outlook
Ahead of its second quarter earnings announcement, the Finnish vendor stated it felt 'it is prudent at this point' to lower its outlook from a range of €1.9 billion to €2.4 billion to €1.6 billion to €2.1 billion.
Nokia explained that since providing the guidance on 30 January, a weaker US dollar was causing a negative impact of around €140 million operationally and €90 million for non-cash venture fund currency revaluations. In addition, the current landscape caused by US President Donald Trump's tariffs means it expects a hit of around €50 million to €80 million on operating profit. Its guidance for free cash flow conversion from comparable operating profit remains at 50 per cent to 80 per cent.
The change to its outlook represents one of the first major moves made by CEO Justin Hotard, who replaced Pekka Lundmark in April.
Hotard told the Financial Times in April he would 'absolutely entertain' increasing Nokia's manufacturing in the US to better deal with the tariff landscape.
Based on preliminary numbers, Nokia added it expects to report net sales of €4.6 billion, a 2 per cent increase year-on-year. Operating profit is expected to show a decline to €300 million from €423 million.
Source: Mobile World Live
Image Credit: Nokia
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The National
an hour ago
- The National
US and EU strike an 'across the board' agreement on tariffs
US President Donald Trump and European Commission President Ursula von der Leyen said on Sunday they had reached a deal to end a transatlantic tariff dispute, averting the risk of a full-scale trade war. Mr Trump and Ms Von der Leyen held private talks at one of Mr Trump's golf courses in Scotland and later announced what the US President called an 'across-the-board' agreement. The breakthrough comes just days before an August 1 deadline for the European Union to strike a deal with Washington or face a sweeping 30 per cent US tariff on EU goods. 'We have reached a deal. It's a good deal for everybody,' Mr Trump told reporters. Mr Trump said the deal involved a baseline levy of 15 per cent on EU exports to the United States, the same level secured by Japan, including for the bloc's crucial auto sector, which is currently being taxed at 25 per cent. 'We are agreeing that the tariff straight across, for cars and everything else, will be a straight across tariff of 15 per cent,' he added. Mr Trump also said the bloc had agreed to purchase "$750 billion worth of energy' from the United States, as well as $600 billion more in additional investments in the country. Negotiating on behalf of the EU's 27 countries, Ms Von der Leyen's European Commission had been pushing hard to salvage a trading relationship worth an annual $1.9 trillion in goods and services. 'It's a good deal,' the EU chief told reporters, sitting alongside Mr Trump following their hour-long talks. 'It will bring stability. It will bring predictability. That's very important for our businesses on both sides of the Atlantic,' she said. The EU has been hit by multiple waves of tariffs since Mr Trump reclaimed the White House. It is currently subject to a 25 per cent levy on cars, 50 per cent on steel and aluminium, and an across-the-board tariff of 10 per cent, which Washington threatens to hike to 30 per cent in a no-deal scenario. Brussels has been focused on getting a deal to avoid sweeping tariffs that would further harm its sluggish economy with retaliation held out as a last resort.
Gulf Today
2 hours ago
- Gulf Today
US, EU chief seek deal in transatlantic trade standoff
US President Donald Trump and EU chief Ursula von der Leyen were set for make-or-break talks in Scotland Sunday, aimed at ending a months-long transatlantic trade standoff, as negotiations went down to the wire. Trump has said he sees a one-in-two chance of a deal with the European Union, which faces an across-the-board US levy of 30 per cent unless it strikes a trade pact by August 1 − with Washington warning Sunday there would be 'no extensions.' Von der Leyen's European Commission, negotiating on behalf of EU countries, is pushing hard for a deal to salvage a trading relationship worth an annual $1.9 trillion in goods and services. According to an EU diplomat briefed ahead of the meeting, set for 4:30 pm (1530 GMT), the contours of a deal are in place after talks went late into Saturday night − but key issues still need settling. And of course the final word lies with Trump. 'A political deal is on the table − but it needs the sign-off from Trump, who wants to negotiate this down to the very last moment,' the diplomat told AFP. The proposal, they said, involves a baseline levy of around 15 per cent on EU exports to the United States − the level secured by Japan − with carve-outs for critical sectors including aircraft and spirits, though not for wine. Any deal will need to be approved by EU member states − whose ambassadors, on a visit to Greenland, were updated by the commission Sunday morning, and would meet again after any accord. According to the EU diplomat, the 27 countries broadly endorsed the deal as envisaged − while recalling their negotiating red lines. Baseline 15 per cent - The Trump-von der Leyen meeting was taking place in Turnberry on Scotland's southwestern coast, where the president owns a luxury golf resort. He was out on the course for much of the weekend. The 79-year-old Trump said Friday he hoped to strike 'the biggest deal of them all' with the EU. 'I think we have a good 50-50 chance,' the president said, citing sticking points on 'maybe 20 different things'. The EU is focused on getting a deal to avoid sweeping tariffs that would further harm its sluggish economy − while holding out retaliation as a last resort. Under the proposal described to AFP, the EU would commit to ramp up purchases of US liquefied natural gas, along with other investment pledges. Pharmaceuticals − a key export for Ireland − would also face a 15-percent levy, as would semi-conductors. The EU also appears to have secured a compromise on steel that could allow a certain quota into the United States before tariffs would apply, the diplomat said. Questions on auto sector - Hit by multiple waves of tariffs since Trump reclaimed the White House, the EU is currently subject to a 25-percent levy on cars, 50 per cent on steel and aluminium, and an across-the-board tariff of 10 per cent, which Washington threatens to hike to 30 per cent in a no-deal scenario. It was unclear how the proposed deal would impact tariff levels on the auto industry, crucial for France and Germany, with carmakers already reeling from the levies imposed so far. While 15 per cent would be much higher than pre-existing US tariffs on European goods − averaging 4.8 per cent − it would mirror the status quo, with companies currently facing an additional flat rate of 10 per cent. Should talks fail, EU states have greenlit counter tariffs on $109 billion (93 billion euros) of US goods including aircraft and cars to take effect in stages from August 7. Brussels is also drawing up a list of US services to potentially target. Beyond that, countries like France say Brussels should not be afraid to deploy a so-called trade 'bazooka' − EU legislation designed to counter coercion that can involve restricting access to its market and public contracts. But such a step would mark a major escalation with Washington. Ratings dropping - Trump has embarked on a campaign to reshape US trade with the world, and has vowed to hit dozens of countries with punitive tariffs if they do not reach a pact with Washington by August 1. US Commerce Secretary Howard Lutnick said Sunday the August 1 deadline was firm and there will be 'no extensions, no more grace periods.' Polls suggest however the American public is unconvinced by the White House strategy, with a recent Gallup survey showing his approval rating at 37 per cent − down 10 points from January. Agencies
Khaleej Times
7 hours ago
- Khaleej Times
Trump, EU chief seek deal in transatlantic tariffs standoff
US President Donald Trump and EU chief Ursula von der Leyen prepared to meet Sunday in Scotland in a push to resolve a months-long transatlantic trade standoff that is going down to the wire. Trump has said he sees a 50-50 chance of reaching a deal with the European Union, having vowed to hit dozens of countries with punitive tariffs unless they hammer out a pact with Washington by August 1. The EU is currently facing the threat of an across-the-board levy of 30 percent from that date. Von der Leyen's European Commission, negotiating on behalf of the EU's member countries, has been pushing hard for a deal to salvage a trading relationship worth an annual $1.9 trillion in goods and services. Any deal with the United States will need approval by all 27 member states. EU ambassadors, on a visit to Greenland, were to meet Sunday morning to discuss the latest negotiations -- and again after any accord. Sunday's sit-down between Trump and the EU chief was to take place at 4:30 pm (1530 GMT) in Turnberry, on Scotland's southwestern coast, where Trump owns a luxury golf resort. The 79-year-old American leader said Friday he hoped to strike "the biggest deal of them all" with the EU. "I think we have a good 50-50 chance" of a deal, the president said, citing sticking points on "maybe 20 different things". He praised von der Leyen as "a highly respected woman" -- a far cry from his erstwhile hostility in accusing the EU of existing to "screw" the United States. But late-night EU talks with US Commerce Secretary Howard Lutnick on Saturday to hammer out the final details were "combative at times," The Financial Times reported. As of Saturday evening, there were "still quite a few open questions" -- notably on pharmaceutical sector tariffs, said one EU diplomat. Tariff levels on the auto sector were also crucial for the Europeans -- notably France and Germany -- and the EU has been pushing for a compromise on steel that could allow a certain quota into the United States before tariffs would apply. Baseline 15% According to European diplomats, the deal on the table involves a baseline levy of around 15 percent on EU exports to the United States -- the level secured by Japan -- with carve-outs for critical sectors including aircraft, lumber and spirits excluding wine. The EU would commit to ramp up purchases of US liquefied natural gas, along with a series of investment pledges. Hit by multiple waves of tariffs since Trump reclaimed the White House, the EU is currently subject to a 25-percent levy on cars, 50 percent on steel and aluminium, and an across-the-board tariff of 10 percent, which Washington threatens to hike to 30 percent in a no-deal scenario. The EU has focused on getting a deal with Washington to avoid sweeping tariffs that would further harm its sluggish economy, with retaliation as a last resort. While 15 percent would be much higher than pre-existing US tariffs on European goods -- at 4.8 percent -- it would mirror the status quo, with companies already facing an additional flat rate of 10 percent. Should talks fail, EU states have greenlit counter tariffs on $109 billion (93 billion euros) of US goods including aircraft and cars to take effect in stages from August 7. Brussels is also drawing up a list of US services to potentially target. Beyond that, countries like France say Brussels should not be afraid to deploy a so-called trade "bazooka" -- EU legislation designed to counter coercion through trade measures which involves restricting access to its market and public contracts. But such a step would mark a major escalation with Washington. Ratings dropping Trump has embarked since returning to power on a campaign to reshape US trade with the world. But polls suggest the American public is unconvinced, with a recent Gallup survey showing his approval rating at 37 percent -- down 10 points from January. Having promised "90 deals in 90 days," Trump's administration has so far unveiled five, including with Britain, Japan and the Philippines. Early Sunday, ahead of his meeting with Von der Leyen, Trump was out again on the golf course, having spent most of Saturday playing at Turnberry amid tight security. The trip to Scotland has put physical distance between Trump and the scandal around Jeffrey Epstein, the wealthy financier accused of sex trafficking who died in prison in 2019 before facing trial. In his heyday, Epstein was friends with Trump and others in the New York jet-set, but the president is facing backlash from his own MAGA supporters demanding access to the Epstein case files. With the uproar refusing to die down, a headline agreement with the EU -- in addition to bolstering Trump's dealmaker credentials -- could bring a welcome distraction.
