Nokia has recorded a larger than expected fall in the sale of its telecoms equipment in the global markets during the first quarter.
The Finnish company warned that its earnings from key business is likely to record a fall this year due to the weak demand for the mobile equipment in the market. The company's net sales fell 17 percent in North America, 11 percent in the Middle East, 6 percent in Asia-Pacific and 5 percent in China.
The first unified earnings report since taking control of rival Alcatel-Lucent in January showed that the company increased its cost-cutting target for the merger. The company is now seeking savings of "above" 900 million euros or around $1 billionduring of 2018 compared to an earlier target of around 900 million euros.
The net sales of the combined networks business also recorded a fall of around 8 per cent to 5.18 billion euros during the first quarter of the year compared to the same period of the previous year. Market analysts had expected the sales for the division to be around 5.51 billion, according to a poll by Reuters. The company said that it expects the networks sales in the full year to fall due to lower investments by operators as well as its focus on integrating Alcatel-Lucent.
"While our revenue decline was disappointing, the shortfall was largely driven by mobile networks, where the challenging environment is not a surprise," Chief Executive Rajeev Suri said.
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