Nokia’s comparable operating profit fell to €301 million in the second quarter, down more than 25 percent from the same period last year.
The company’s net sales rose marginally year-on-year, from €4.47 billion to €4.55 billion.
The Finnish technology group announced on Tuesday that it is lowering its full-year profit forecast, citing the weakening of the US dollar and the impact of import tariffs.
Chief Executive Justin Hotard said currency fluctuations, especially the dollar’s decline, had a significant effect on the company’s revenue and profitability between April and June.
“Nokia's performance in the second quarter reflected a challenging environment, with foreign exchange headwinds limiting earnings growth,” Hotard said in the statement.
The company highlighted particular pressure in North American markets, where demand remained subdued and the dollar's weakness further reduced revenue in euro terms.
Nokia also noted that higher import tariffs have increased costs, which further eroded margins during the period.
While full-year net sales guidance remains unchanged, Nokia expects its operating margin to fall short of previous projections.
The company is now targeting a comparable operating margin closer to the lower end of its previously announced range of 11.5 to 13 percent.
Nokia’s network infrastructure segment delivered solid growth, partly offsetting weaker demand in mobile networks.
The company said it would continue focusing on cost discipline and operational efficiency to manage the currency and tariff impacts.
HT