Nokia Reports Q2 Loss and Sales Drop

Nokia's ADRs fell over 5% as the company reported a surprise loss of 142 million euros for the second quarter, driven by a significant impairment charge related to its submarine networks business. Sales dropped 18% year-over-year to 4.47 billion euros due to weak market conditions and reduced 5G investments, particularly in India. Despite these challenges, CEO Pekka Lundmark expressed optimism for a sales recovery in the second half of the year, citing stabilizing industry conditions and strong order intake. Nokia affirmed its full-year profit outlook and plans to expedite its 600 million euro stock buyback program. However, the company faces ongoing caution from mobile operators and the loss of a substantial portion of AT&T's business.