Nokia’s quarterly profit beats on 5G demand – Reuters

The logo and ticker for Nokia are displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 21, 2018. REUTERS/Brendan McDermid

  • Net sales up 2% to 5.4 bln euros vs 5.3 bln last year
  • Profit up to 633 mln euros from 486 mln last year
  • Chip supply issues to affect Q4, CEO says
  • 5G market growing, couple of years before peak – CEO
  • Shares up 5%

HELSINKI/STOCKHOLM, Oct 28 (Reuters) – Nokia (NOKIA.HE) reported a stronger-than-expected third-quarter operating profit on Thursday on higher demand for 5G gear, but warned the global shortage of semiconductors would hit its supply chain.

Shares of the Finland-based company were up 5% as investors lauded its efforts to get back on track following product missteps last year by riding on 5G demand and taking market share away from rivals, particularly in China.

Any problem in supplying to customers on time might dent those ambitions.

“At the moment, we are limited by semiconductor availability, that will affect Q4 and it’s quite possible that this challenge will get bigger before it starts getting better,” Chief Executive Officer Pekka Lundmark said in an interview.

Global producers of goods from televisions to cars have faced a host of supply chain issues ranging from a shortage of vital components, manpower, logistics snarls, and delays at plants because of power cuts in China.

Rival Ericsson(ERICb.ST) last week also warned of supply …….

Source: https://www.reuters.com/business/media-telecom/nokias-third-quarter-profit-beats-expectation-2021-10-28/

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