By Dominic Chopping

Nokia on Friday lowered its full-year net sales guidance and narrowed its operating margin outlook amid a weaker demand picture in its network infrastructure and mobile networks businesses due to a tougher macroeconomic environment and as customers work through built-up inventory.

The Finnish telecommunications-equipment company now sees sales of between 23.2 billion euros and 24.6 billion euros ($26.05 billion-$27.62 billion) from EUR24.6 billion to EUR26.2 billion previously.

The comparable operating margin is seen at 11.5% to 13% from 11.5% to 14% previously.

"Customer spending plans are increasingly impacted by high inflation and rising interest rates along with some projects now slipping to 2024--notably in North America," Nokia said.

"There is also inventory normalization happening at customers after the supply chain challenges of the past two years."

Ahead of the company's second-quarter earnings on July 20, Nokia also reported preliminary net sales of around EUR5.7 billion for the three-month period and a comparable operating margin of around 11%, with operating profit boosted by EUR80 million related to catch-up payments in its technologies unit.

The company said it will continue to take measures to ensure it remains on track towards its long-term targets of growing faster than the market and delivering a comparable operating margin of at least 14%.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

July 14, 2023 02:20 ET (06:20 GMT)

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