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Nokia’s new managing director said that he would “entertain” increase the American manufacturing of the Finnish telecommunications company to mitigate the impact of Donald Trump’s prices because the company said the first quarter of the first quarter on Thursday.
Justin Hotard, who took over in Nokia on April 1, said that he expected the prices to reach the operational profits of 20 million euros to 30 million euros in the second quarter and that the completion of the higher end of the company's directives in 2025 would now be “difficult”. Nokia previously said that he expected operational profits from 1.9 billion euros to 2.4 billion euros this year.
The company's share price fell 6% at the start of negotiations on Thursday.
The CEO of Nokia, which was born in the United States, spoke because the company said that operating profit fell at 156 million euros in the first quarter, a sharp drop compared to 600 million euros a year earlier and less than two-thirds of the 244 million euros expected. He blamed the drop in the drop in net sales to Nokia Technologies and the impact of a contractual settlement burden.
Hotard highlighted the importance of the American market for Nokia – where the company estimates that 90% of all communications use its technology – and declared that it would “absolutely entertain” the expansion of manufacturing in the country to provide “additional resilience” at prices.
“If there are reinforcement opportunities (American manufacturing), in the sense that it will help us to stimulate growth on the market, this is one of the things I will look at,” he said.
Nokia has five manufacturing facilities in the United States, including two semiconductor factories and a flea manufacturer in California.
Hotard's comments come after Brendan Carr, a Big Tech virgin criticism which was operated by Trump to lead the Federal Communications Commission, said He “looked at” Granting Nokia and Swedish rival Ericsson faster approval for new technologies if they move more manufacturing in the United States.
The two companies are the largest providers of mobile network infrastructure equipment in the United States. Ericsson's chief Börje Ekholm said that the company would also plan to develop manufacturing in the United States according to the impact of prices.
