Nokia shares dropped 7 per cent today after the company cut its sales growth forecast for 2002.
The sales warning overshadowed better-than-expected first-quarter profits as Nokia, the world's largest mobile phone maker, managed better than rivals to weather weaker demand.
Nokia warned group sales would grow only between 4 and 9 per cent in 2002 after earlier saying it expected sales to grow 15 per cent year-on-year. Nokia and rivals have been hit by telecoms operators holding off buying new network equipment, and consumers are reluctant to buy phones.
Nokia's first-quarter net sales were worse than expected, down 12 per cent to €7.01 billion year-on-year. Pre-tax profit came in at €1.31 billion versus €1.49 billion in the same quarter last year.
The company's struggling mobile networks division - which has been forced to shed staff, close plants and outsource production to cope with tougher competition and weaker demand - saw sales fall 29 per cent to €1.44 billion.
Mobile phones, which comprise most of the company's sales and earnings, saw sales fall 7 per cent to €5.44 billion.