Nokia’s Profit Dropped 29% as Weak Dollar, Tariffs Pinch

Nokia Oyj, a leading 5G equipment provider, reported a 29% drop in its adjusted profit for the second quarter compared to the same period last year. The decline was primarily attributed to the impact of tariffs and a weak US dollar. The company's adjusted profit, which excludes certain items, fell to 373 million euros ($440 million) from 525 million euros a year earlier. Nokia's Chief Executive Officer, Pekka Lundmark, cited the "negative impact of tariffs and currency" as the main factors contributing to the decline in profitability. Despite the drop in profit, Nokia's net sales remained relatively stable, reaching 5.31 billion euros in the second quarter, compared to 5.69 billion euros in the same period last year. The company's performance was impacted by the ongoing global challenges, including supply chain disruptions and the economic uncertainty caused by the COVID-19 pandemic. Nokia remains focused on its strategic priorities, such as investing in 5G technology and improving its cost structure, to navigate the current market conditions and maintain its competitive position in the industry.