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ESPOO, Finland - Finnish telecommunications equipment maker Nokia (HE:NOKIA) on Tuesday lowered its 2025 comparable operating profit guidance, citing currency fluctuations and tariff impacts as key factors affecting its financial outlook.
The company reduced its profit forecast to between €1.6 billion and €2.1 billion, down from its previous January guidance of €1.9 billion to €2.4 billion, according to a press release statement.
Nokia identified the weaker U.S. dollar as the primary challenge, with currency fluctuations expected to create an approximately €230 million negative impact. This includes €140 million in operational effects and €90 million from non-cash venture fund currency revaluations.
The revised guidance is now based on a EUR:USD exchange rate of 1.17, compared to the 1.04 rate used in January when the company issued its initial 2025 forecast.
Additionally, Nokia stated that the "current tariff landscape" is expected to impact full-year operating profit by €50 million to €80 million.
For the second quarter of 2025, Nokia’s preliminary results show net sales of approximately €4.55 billion and comparable operating profit of €300 million. The company noted that Q2 comparable operating profit includes a negative €50 million impact from its venture funds, primarily related to currency effects.
Despite lowering its profit outlook, Nokia maintained its guidance for free cash flow conversion from comparable operating profit at 50% to 80%.
The company emphasized that its "underlying business performed as expected through the first half" of the year, with the guidance adjustment relating to external factors beyond its control.
Nokia will release its complete second quarter and half-year 2025 financial results on Thursday, July 24.
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