Nokia Lowers 2023 Net Sales and Operating Margin Outlook

Espoo, Finland. Nokia Oyj announced on Friday it is revising its financial outlook for the full year 2023. The company has lowered its net sales forecast to a range of EUR 23.2 billion to EUR 24.6 billion, down from the previous estimate of EUR 24.6 billion to 26.2 billion. Additionally, Nokia has narrowed its comparable operating margin outlook to between 11.5% and 13%, from the previously guided 11.5% to 14%.

The adjustments primarily affect Nokia's Network Infrastructure and Mobile Networks business groups. The company attributes the weaker demand outlook for the second half of the year to macroeconomic conditions and customer inventory digestion. Factors such as high inflation, rising interest rates, and project delays, particularly in North America, are impacting customer spending plans. The normalization of customer inventories following supply chain challenges over the past two years also contributes to the revised forecast.

Preliminary results for the second quarter indicate net sales of approximately EUR 5.7 billion, flat year-on-year on a constant currency basis, with a comparable operating margin of around 11%. Nokia Technologies provided a boost to the quarterly operating profit with approximately EUR 80 million from catch-up net sales.

Nokia stated it is actively managing costs to protect profitability and remains committed to its long-term goals of outgrowing the market and achieving a comparable operating margin of at least 14%. The company will release its full second-quarter and half-year 2023 financial results on July 20.