By Dominic Chopping
Nokia Corp. on Thursday posted a forecast-beating rise in third-quarter net profit and now expects full-year margins to land at the top of its guidance range. However, it cautioned that both the availability and “unprecendented” cost inflation of components could hurt margins next year.
The company’s comparable net profit for the quarter rose to 454 million euros ($526.8 million) from EUR300 million a year earlier, as sales rose 2.0% to EUR5.4 billion.
Analysts polled by FactSet had expected comparable net profit of EUR345 million on sales of EUR5.4 billion.
On a reported basis, Nokia net profit rose to EUR342 million, it said.
The company said it still expects full-year net sales of EUR21.7 billion to EUR22.7 while the adjusted operating margin is expected to be towards the upper-end of the 10%-12% range.
“The uncertainty around the global semiconductor market limits our visibility into 4Q and 2022,” Chief Executive Pekka Lundmark said.
The company is working closely with suppliers to ensure component availability, and with customers to ensure it can meet their needs and mitigate the unprecedented component cost inflation.
“Coupled with the one-offs we’ve benefited from this year, this may limit our margin expansion potential in 2022,” Mr. Lundmark added.
Write to Dominic Chopping at [email protected]