Finnish telecom equipment maker Nokia (NOKIA.HE) announced on Thursday that its operating profit declined by 32% in the second quarter due to weak demand for 5G telecom equipment. The comparable operating profit decreased to 423 million euros ($462.38 million) from 619 million euros in the same period last year. Both Nokia and its Swedish competitor Ericsson have faced reduced telecom equipment purchases from customers.
“Our financial performance in the second quarter continued to be affected by ongoing market weakness, with net sales declining 18% year-on-year in constant currency,” said CEO Pekka Lundmark in a statement. However, he noted that sales are expected to improve in the second half, driven by Nokia’s order intake, especially in the Networks division. The company maintained its full-year outlook.
