Nokia CEO Pekka Lundmark heralded a return to growth for the vendor’s mobile networks business during Q2, even though it experienced an ongoing impact from supply chain constraints.
In a presentation of the earnings, Mr Lundmark highlighted growing demand for digitalisation and connectivity services as key opportunities for Nokia moving forward.
“We are in a good place”, Mr Lundmark remarked.
The CEO indicated pressure on suppliers is expected to ease through the second half of 2022 and the first half of 2023.
Nokia is now “well placed to deliver our full year 2022 guidance”, he said.
In the context of the global economic situation, Mr Lundmark noted Nokia’s focus is on “preparing for all possible scenarios”.
The CEO indicated Nokia is currently “tracking towards the higher end of our net sales guidance and towards the midpoint of our operating margin guidance as we manage ongoing inflation and currency headwinds”.
Nokia’s mobile networks net sales grew 1 per cent year-on-year to €2.6 billion and delivered “solid profitability”, Mr Lundmark said.
The network infrastructure business achieved 12 per cent growth to €2.2 billion, with fixed and submarine networks proving to be key drivers. From a regional perspective, North America “was a real standout” with a 19 per cent increase in net sales, Lundmark said.
Across the whole of Nokia’s business, sales increased 3 per cent to €5.9 billion, and net profit was up 31 per cent to €460 million.