Nordic noir

26 October 2017 By Liam Proud Follow @liamwardproud

The Finnish telecoms-kit maker’s shares slumped 15 pct after poor third-quarter results. They are trading at a discount to Ericsson’s stock despite improving margins. A warning on weak demand for its mobile-networks products shows tough market conditions trump good management.

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Nokia said on Oct. 26 that revenue in the three months to the end of September was 5.5 billion euros, down 4 percent from the same period a year earlier after stripping out the effects of currency moves.

Chief Executive Rajeev Suri said he expects that demand in the mobile networks markets in which the group competes will contract by between 2 and 5 percent next year because of “multiple technology transitions underway”, robust competition in China, and potential consolidation between mobile operator clients.

Sales in Nokia's main networks business fell 9 percent in the third quarter to 4.8 billion euros, while the division’s operating profit dropped 23 percent to 334 million euros. Analysts polled by Reuters had on average forecast sales of 5 billion euros and operating profit of 432 million euros.

Nokia shares were down almost 15 percent at 1005 BST to 4.34 euros.

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