Latest news with #JustinHotard
Phone Arena
25-07-2025
- Business
- Phone Arena
Nokia's profit prediction for 2025 is down by $300 million
Where does the money come from? Should Nokia start making phones again? Yes, that'd be great! It's a bad idea. Only if newer models are as tough as the Nokia 3310. Yes, that'd be great! 0% It's a bad idea. 0% Only if newer models are as tough as the Nokia 3310. 0% What's the 2025 forecast? Is the weaker US dollar and (or) growing pressure from trade tariffs to blame here? Certainly, according to new CEO Justin Hotard, who said the dollar's decline hurt both day-to-day operations and the value of Nokia's investment funds. Receive the latest mobile news By subscribing you agree to our terms and conditions and privacy policy – Nokia CEO Justin Hotard, July 2025 The announcement came during its Adding to the pressure are tariffs tied to US trade policies. Although the Trump administration's new tariffs on European goods are not expected to take effect until August 1, Nokia is already feeling the impact. Hotard noted that even the threat of additional tariffs has been enough to disrupt business. So, Q2 results fell short of expectations. Nokia reported $267 million in profit and net income of just $94 million from continuing operations – both significantly down from the same quarter last year ($435 million). Following the earnings news, Nokia's stock dropped nearly 4%, which is not a small number. Maybe Nokia should start making smartphones again. Is the weaker US dollar and (or) growing pressure from trade tariffs to blame here? Certainly, according to new CEO Justin Hotard, who said the dollar's decline hurt both day-to-day operations and the value of Nokia's investment announcement came during its Q2 earnings release , where the company said it now expects operating profit to land between $1.9 billion and $2.5 billion – down from the earlier range of $2.2 billion to $2.8 to the pressure are tariffs tied to US trade policies. Although the Trump administration's new tariffs on European goods are not expected to take effect until August 1, Nokia is already feeling the impact. Hotard noted that even the threat of additional tariffs has been enough to disrupt Q2 results fell short of expectations. Nokia reported $267 million in profit and net income of just $94 million from continuing operations – both significantly down from the same quarter last year ($435 million). Following the earnings news, Nokia's stock dropped nearly 4%, which is not a small Nokia should start making smartphones again. Grab a Moto razr 2024 for free! Switch to Total Wireless and buy 2 months of a 5G Unlimited plan to score the phone free! We may earn a commission if you make a purchase Check Out The Offer As you very well know, Nokia doesn't make phones anymore – which will be a cruel, mind-blowing fact to a time traveler from the year 2000. But the company doesn't make that much profit as well – at least, not as much as previously projected. Nokia had to lower its full-year 2025 profit forecast by approximately $300 put, Nokia builds the tech that powers the internet and mobile networks. In 2025, it's focused on helping phone carriers, big cloud companies, and businesses with 5G, fiber, and data center infrastructure. Nokia also works with factories, airports, and other industries to bring them private wireless networks. The company recently bought a firm called Infinera to boost its fiber and optical networking business, especially in North company also makes money by licensing its patents to phone makers and other tech companies. It holds thousands of patents for things like 5G and Wi-Fi.
Tahawul Tech
25-07-2025
- Business
- Tahawul Tech
Nokia lowers 2025 profit outlook
Nokia recently lowered their 2025 profit projections in light elements beyond their control such as the impact of increased currency and U.S. tariffs ahead of their Q2 results announcement. 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
Time of India
24-07-2025
- Business
- Time of India
Nokia's India net sales fall 6% on-year to ₹3,148.05 crore in Q2FY25
NEW DELHI: Finnish telecom gear maker Nokia reported a 6% year-on-year decline in its India net sales to 310 million euros (~₹3,148.05 crore) in the second quarter of fiscal year 2025 (Q2FY25), mainly dragged by a fall in its mobile networks business. Nokia, which follows the January-December financial year, had posted net sales of 329 million euros in Q2FY24 for the India market. 'Net sales in Asia Pacific (APAC) decreased in the second quarter, driven by declines in Mobile Networks, particularly in Greater China and India. Network Infrastructure (NI) saw broad-based growth across APAC. Cloud and Network Services saw growth in India and Rest of APAC which was offset by a decline in Greater China,' the vendor said in its earnings statement released on Thursday. This is in sharp contrast with its Swedish rival Ericsson, which has reported a 28% year-on-year fall in sales in the market area South East Asia, Oceania and India at 5.5 billion crowns (~₹4,917 crore) in the April-June 2025 quarter, weighed down by a pause in fifth-generation (5G) network investments by Indian telecom carriers. India, however, remained second among the top five countries by sales at 6% in the January to June period of 2025 for Ericsson, a company spokesperson told ET earlier. Nokia's mobile networks' net sales slid by 17% year-on-year in Q2FY25, primarily due to a decline in the Americas, and to some extent, APAC, while Europe, the Middle East and Africa (EMEA) grew slightly. 'Mobile Networks' net sales declined 13%, primarily related to the prior year settlement benefit and also due to project timing in India,' Justin Hotard, president & CEO, Nokia, said in the earnings statement. Nokia's cloud & network services net sales increased by 10% year-on-year in Q2FY25, mainly driven by core networks. 'In APAC, growth in Asia Pacific and Japan along with India was partially offset by a decline in Greater China,' it said. The network infrastructure net sales were up by 25% year-on-year in the fiscal second quarter of 2025, which included a full quarter of Infinera's financials. Nokia's network infrastructure business comprises its home broadband and optical transmission equipment business, which serves mostly enterprises, governments and webscalers, among others, while mobile networks involve supply of telecom equipment for telcos' retail network such as 4G and 5G. READ MORE | Ericsson's sales in South East Asia, Oceania & India slump by 28% on-year in Q2FY25 Nokia lowers full year operating profit outlook Nokia's overall sales grew slightly by 2% year-on-year to 4,546 million euros in Q2FY25. 'We are facing two headwinds to our full year operating profit outlook, which are outside of our control: currency due to the weaker US Dollar, and tariffs. The currency has an approximately 230 million euros negative impact relative to our expectations at the start of the year, with 90 million euros resulting from non-cash venture fund currency revaluations,' Hotard said. He added that the current tariff levels are forecasted to impact operating profit by 50 million euros to 80 million euros, inclusive of those in Q2. 'Considering these two headwinds, we decided it was prudent at this point to lower our comparable operating profit outlook to a range of 1.6 billion euros to 2.1 billion euros from the prior range of 1.9 billion euros to 2.4 billion euros,' the chief executive said. In India, Ericsson along with Nokia and South Korean Samsung, have commercial 5G deals with top telecom carriers Reliance Jio , Airtel, and Vodafone Idea (Vi). While Vi switched on its commercial 5G services in March, and is currently focused on expansion in 17 priority circles by August, its peers Jio and Airtel already have nationwide 5G networks and provide 5G FWA to customers. Earlier, Ericsson and Nokia saw a surge in India sales from the fourth quarter of 2022 and first quarter of 2023, respectively, shortly after Airtel and Jio began rolling out 5G networks nationally from October 2022. However, both telcos have concluded their 5G network deployments in the first half of 2024 and are now focused on boosting revenues and driving monetisation of their 5G businesses.
CNA
24-07-2025
- Business
- CNA
Nokia confirms quarterly miss, sees stronger second half if dollar holds
Nokia expects the second half of 2025 to be stronger than the first, CEO Justin Hotard said on Thursday, two days after the network equipment maker issued a profit warning due to a weaker U.S. dollar and tariffs. "Considering these two headwinds, we decided it was prudent at this point to lower our comparable operating profit outlook," Hotard said in a statement. He told reporters in a call that other significant foreign exchange moves were a risk in the near term, estimating an impact of 10 million to 15 million euros ($12 million to $18 million) for every one cent of change in the euro-dollar exchange rate. Nokia's shares were up about 1 per cent in early trade. They had fallen 7.6 per cent on Wednesday after the profit warning the night before. Hotard said on Thursday that the company would simplify some of its operation and continue to invest in connectivity to capitalise on the growth of artificial intelligence, targeting communication service providers but also new areas such as defence and national security. An agreement between NATO members to increase their defence spending target to 5 per cent of gross domestic product will be an opportunity for the company, he told Reuters. Hotard, who was previously the head of Intel's AI and data centre business, became CEO in April. A decade ago, the Finnish firm had moved away from its once-dominant mobile phone business, which made it a household name thanks to its 3310 model, to focus on telecoms infrastructure serving carriers and enterprise clients. Nokia also confirmed its preliminary figures for the second quarter, which had missed market expectations on Tuesday. Its revenue grew marginally to 4.55 billion euros while its operating profit, which excludes certain charges and asset revaluations to make it comparable with last year's results, fell 29 per cent to 301 million euros in the quarter. That was below an average analyst forecast of 402 million euros in an Infront consensus provided by Nokia on July 17, even excluding the reported 60-million-euro currency revaluation and an impact from tariffs of between 20 and 30 million euros.
CNA
24-07-2025
- Business
- CNA
Nokia sees stronger second half after second-quarter miss
Nokia's expects the second half of 2025 to be stronger than the first, CEO Justin Hotard said on Thursday, two days after the network equipment maker issued a profit warning due to a weaker U.S. dollar and tariffs. "Considering these two headwinds, we decided it was prudent at this point to lower our comparable operating profit outlook," Hotard said in a statement. Nokia also confirmed the preliminary figures for the second quarter, which had missed market expectations on Tuesday. Its operating profit, which excludes certain charges and asset revaluations to make it comparable with last year's results, fell 29 per cent to 301 million euros ($354.34 million) in the quarter, while revenue grew marginally to 4.55 billion euros.
