By Dominic Chopping

 

Nokia Corp. on Thursday posted a forecast-beating second-quarter net profit as demand for mobile networks and network infrastructure remained strong, despite continuing supply chain constraints.

The component supply situation remains constrained but is showing signs of improvement, and Nokia said it expects to deliver net sales growth in mobile networks on a constant currency basis in 2022.

North America had good sales growth in mobile networks, while sales in Europe declined, mainly driven by its decision to exit Russia.

The company's comparable net profit for the quarter rose to 585 million euros ($595.7 million) from EUR539 million a year earlier. Sales rose 11% to EUR5.87 billion, it said.

Analysts polled by FactSet had expected comparable net profit of EUR461 million on sales of EUR5.61 billion.

On a reported basis, Nokia posted a net profit of EUR460 million from EUR351 million a year earlier.

Nokia lifted full-year sales guidance to between EUR23.5 billion and EUR24.7 billion, from EUR22.9 billion-EUR24.1 billion, adjusted for currency. It still sees the full-year comparable operating margin at 11%-13.5%.

"We are currently tracking towards the higher-end of our net sales guidance and towards the mid-point of our operating margin guidance as we manage ongoing inflation and currency headwinds," Chief Executive Pekka Lundmark said.

 

Write to Dominic Chopping at dominic.chopping@wsj.com

 

(END) Dow Jones Newswires

July 21, 2022 02:12 ET (06:12 GMT)

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