Nokia slashes profit outlook in fight for 5G business, stock drops 21%

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Finland's Nokia slashed its 2019 and 2020 profit outlook on Thursday, sayin...

) slashed its 2019 and 2020 profit outlook on Thursday, saying profits would come under pressure as the company spends more to fend off rivals in the fast-growing 5G networks business.

The telecom network equipment maker, which met third-quarter profit expectations, also said it would pause dividend payments to raise investments in 5G and only resume them when its cash position improves to around 2 billion euros. Nokia shares plunged 21% to 3.72 euros in morning trade as the company said key customers in its biggest 5G market — North America — were limiting spending due to proposed mergers. Nokia shares are down 30% this year.

 

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