Nokia Says Fiscal Year Operating Margin Topped Guidance on One-Offs

By Dominic Chopping

Nokia Corp. said Tuesday that it expects its 2021 operating margin to exceed guidance after getting a boost from one-offs in the fourth quarter.

The Finnish telecommunications-equipment supplier said it expects to report a full-year comparable operating margin of 12.4% to 12.6%, above its previous guidance of 10% to 12%, after getting a 150 basis point benefit from one-offs related to venture fund investments, a one-off software contract in the second quarter, bad debt provision reversals, and some other one-time gains.

Nokia said its underlying business in the fourth quarter performed largely as expected, with full-year sales estimated at around 22.2 billion euros ($25.1 billion), within its previous guidance of EUR21.7 billion to EUR22.7 billion.

The company added that it is also introducing new comparable operating margin guidance for the financial year 2022 of 11% to 13.5%.

"This new guidance considers estimated continued improvements in the underlying business, supply constraints and cost inflation, with the year-on-year progression also impacted by the significant one-offs seen in 2021," it said.

Nokia will release its fourth quarter and full year 2021 financial results on Feb. 3, when it will also revisit its longer-term outlook.

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

January 11, 2022 02:59 ET (07:59 GMT)

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