Nokia Networks reported revenues down 5 percent to EUR 3.2 billion. Excluding currency effects, sales were down 12 percent, hurt by a slowdown at Global Services and Mobile Broadband. China and the MEA region were the main growth areas. Over the full year, sales were still up 3 percent to EUR 11.5 billion. Adjusted operating profit was flat in Q4 at EUR 468 million, while the margin improved to 14.6 percent. At 10.9 percent in the full year, Nokia Networks met its target for a margin at the high end of the long-term goal of 8-11 percent.
Nokia CEO Rajeev Suri said the company delivered on its annual targets, and the Mobile Networks and Global Services units capped off the year with good Q4 results. The outlook appears more difficult, as LTE roll-outs in China and other markets start to slow. The first quarter, in particular, looks "quite challenging" as the economic uncertainty causes operators to reassess their capex plans, Suri said. Following the start of operations with Alcatel-Lucent in January, Nokia said it will focus on operational and commercial discipline, ensuring synergies are delivered as quickly as possible. The synergies are targeted to reach EUR 900 million per year by 2018.
Nokia said it will give more guidance at its Q1 results report when Alcatel-Lucent is included. Its outlook for the overall market is "flattish capex" and a declining wireless infrastructure market in 2016, with a greater-than-normal seasonal decline in Q1 2016.
