Helsinki, April 28 (BNA): Telecom equipment maker Nokia reported stronger-than-expected quarterly operating profit on Thursday, boosted by rising demand for 5G equipment despite supply chain constraints.
The Finnish company made gains against competitors such as Sweden’s Ericsson and China’s Huawei after it made its products more competitive by investing heavily in research and finding ways to cut costs from other regions, Reuters reports.
“Demand in our end markets remains high, and while supply chain constraints continue to impact our growth, we delivered consistent net currency sales growth of 1% in the first quarter,” CEO Becca Lundmark said in a statement.
Network infrastructure grew 9% in constant currency, driven by strong demand for both fixed and submarine networks.
The company’s similar operating profit in the first quarter rose to 583 million euros ($613 million) from 551 million euros last year, topping the 513 million euros forecast by 11 analysts polled by Refinitiv.
The company also confirmed full-year net sales forecasts of between €22.9 billion and €24.1 billion on a constant currency basis.
Earlier in the month, Nokia announced its withdrawal from Russia which would save €100 million, but kept its full-year forecast.