Economy, Sci & Tech

Nokia Profits Down on Alacatel Merger

Nokia Profits Down on Alacatel MergerNokia Profits Down on Alacatel Merger

Hit by a lower demand in mobile networks, Nokia has reported a first-quarter net loss of €513 million ($584 million) since it acquired Alcatel-Lucent, down from a standalone profit of €177 million a year earlier and warned of a further decline. Nokia Corp. says combined net sales were €5.5 billion in the period, compared with €2.9 billion a year earlier when it had not yet merged with the French telecom. CEO Rajeev Suri described the revenue decline as disappointing and said the climate remained "challenging", warning of further cuts and layoffs after the €15.6-billion acquisition of Alcatel-Lucent. Suri said on Monday that Nokia had earlier noted it expected some "market headwinds in 2016 in the wireless sector and we continue to hold that view today".