Nokia today said it was on track to meet or exceed earnings guidance for the first quarter but warned sales of network equipment would see a sharper fall than forecast.
Shares in the company, the world's largest mobile phone maker, fell more than 4 per cent to €25.95 following the statement.
Nokia said earnings per share would be at the upper end or slightly above the €0.15 to €0.17 range it forecast in January. But Nokia said sales would be slightly below the 6-10 per cent year-on-year decline previously estimated.
Revenues in the network business would be down 25 per cent year-on-year in the first quarter, rather than the 16 to 20 per cent decline it estimated in January.
Nokia maintained its forecast for its handset unit, with sales expected to decline 3-7 per cent year-on-year. The sharper-than-expected decline in sales raises more concerns about Nokia's ability to meet its full-year target of 15 per cent revenue growth.
Analysts have already been sceptical about this target, arguing that to get back on track after the first quarter, Nokia would need to achieve sales growth of about 27 per cent in the networks unit and 22 per cent for handsets during the rest of the year.
Financial Times Service