Nokia pointed to supply chain problems hampering sales growth its mobile networks business in Q1, though it highlighted a significant order backlog and expectations of progress across the remainder of the year.
The vendor’s mobile network sales were flat year-on-year at €2.3 billion, though it noted when adjusted to constant currency terms this would have dropped 4 per cent.
During its earnings call, Nokia CEO Pekka Lundmark (pictured) said the company was confident it would still achieve annual growth in the business area due to its competitive position and demand.
He also voiced optimism supply constraints would ease, pointing to the gradual reopening of industrial facilities in China following lockdowns in the country.
Although mobile network sales were hampered, operating profit was up in the segment on improved margins.
Lundmark noted overall he was pleased with the company’s start to the year. “The demand environment remains strong and while supply chain and inflation challenges remain, we are confident we can deliver our 2022 outlook and continue to make good progress towards our long-term targets.”
Across the whole business Nokia booked revenue of €5.3 billion, up 5 per cent, with net profit of €219 million, a decline of 17 per cent largely attributed to a provision to cover an exit from Russia.
Nokia noted profit excluding one-off items would have grown 11 per cent.Subscribe to our daily newsletter Back