Nokia reports profit rise despite supply chain constraints in Q3

Finnish company Nokia increased its operating profit in July-September by a third year-on-year, from 486 million euros to 633 million euros, it announced on Thursday, reported Xinhua.

Meanwhile, the company's net sales grew two percent to nearly 5.4 billion euros.

"Overall, I am pleased with our strong financial performance in 2021 so far. We continue to expect seasonality to be less pronounced this year than previously," CEO Pekka Lundmark said in a statement.

Lundmark noted that the growth in net sales was achieved despite headwinds for Nokia in North America, and global supply chain constraints. Sales grew most in the Asia-Pacific region, which Lundmark attributed to increased technological investments and strong demand.

The launch of FP5 IP routing silicon, which both increases capacity and reduces power consumption, "will help reduce the carbon footprint of both Nokia and its customers," Lundmark said.

Nokia reconfirmed its prediction that its sales will be between 21.7 billion euros and 22.7 billion euros this year, and profitability between 10 percent and 12 percent. Nokia's operating margin in Q3 was 11.7 percent.

However, the uncertainty around the global semiconductor market limits visibility into Q4 and beyond, Lundmark warned.