Nokia may maintain its 2025 outlook despite first quarter losses and expand US production
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Nokia’s new CEO, Justin HotardIt is open to expanding the company’s US manufacturing capacity to mitigate the impact of tariffs introduced during President Donald Trump’s administration.
The company predicts that tariffs will affect comparable operating profits for the second quarter of approximately $22 million to $34 million. Finnish values Telecommunications company Shares fell 6% on Thursday due to weak first quarter revenues.
Nokia reported a net loss of $68.2 million in the first quarter, compared to $498 million the previous year. However, according to Wall Street JournalThe company’s comparable operating profit fell sharply to 74% to $177 million.
Meanwhile, analysts previously reported that the company had hoped to earn $341 million and $143 million in net profits, WSJ reported. Quote fact set.
These companies announced their intention to increase US manufacturing
On February 26th, 2023, Nokia Headquarters in Espoo, Finland. (via Nokia/Reuters photo)
The company pointed to a $136 million settlement as a lower than expected reason. First Quarter Numbers. Hotard said the settlement is now related to the issue of a fully resolved customer project.
Despite first quarter performance, Nokia has not changed its outlook for 2025. The outlook predicts profits of between $2.2 billion and $2.7 billion. However, Hotard, who has been CEO for about three weeks, admits that reaching the top of the range will be “more challenging.”
Nokia’s press conference was held on February 10th, 2025 in Espoo, Finland. (Markku Ulander/Via/Reuters)
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Hotard I told Reuters His demand has not dropped considerably due to US tariffs, so CEOs see an opportunity to value Nokia’s US investment.
“It’s not a discussion about (moving) about our headquarters…it’s not that important in terms of investment in research and development (R&D) and manufacturing capacity,” Hotard told Reuters.
On October 19, 2023, a man at Nokia headquarters in Espoo, Finland looks at his phone. (Jussi Nukari/Leaf Photo/Via/Reuters)
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But Hotard said Financial Times (ft) He said he would “absolutely entertain” the idea of expanding US manufacturing and creating “additional elasticity” to tariffs. The outlet reported that Nokia currently has five manufacturing facilities in the US
“If there’s an opportunity (US manufacturing) to strengthen in terms of helping us to drive growth in the market, that’s one of the things I see,” Hotard said.
Some companies are beginning to invest more in the US to avoid a big hit from tariffs. According to CBS Newsthe list of companies includes Chobani, Johnson & Johnson, Apple and Abbott Laboratories.