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Nokia accelerates cost-cutting after market slowdown
2016-05-10 08:36:00| Telecompaper Headlines
(Telecompaper) Nokia reported a 9 percent fall in pro forma first-quarter sales to EUR 5.603 billion, hurt by the slowdown in the mobile networks markets. Operating profit rose to EUR 345 million from EUR 276 million a year ago, on a pro forma basis for the merger with Alcatel-Lucent. The net result was a loss of EUR 613 million versus a profit of EUR 139 million a year earlier, due to merger-related charges. Nokia confirmed it has started the earlier announced job cuts and was pushing ahead quickly with the realisation of synergies from the Alcatel deal. It now expects to exceed to target of EUR 900 million in operating cost savings for 2018. The focus on the integration this year as well as a weak market outlook are expected to lead to a decline in adjusted sales and operating margin this year at the Networks business this year.
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Category:Telecommunications