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Nokia cuts first-quarter sales guidance

The world's largest mobile phone maker Nokia cut its first-quarter sales guidance on Tuesday, saying earnings would be at the low end of expectations due to more sales of cheaper handsets.
/ Source: Reuters

The world's largest mobile phone maker Nokia cut its first-quarter sales guidance on Tuesday, saying earnings would be at the low end of expectations due to more sales of cheaper handsets.

The stock plunged by 13 percent to 15.09 euros by 1222 GMT on the news. The Dow Jones Stoxx Technology index dropped by 6.4 percent.

Nokia said in a statement it now expects January-March earnings per share of 0.17 euros versus previous guidance of 0.17-0.19 euros from January. Some analysts were expecting earnings of up to 0.21 euros.

"Due to certain gaps in its product portfolio, mainly in the mid range, the company was not able to fully capitalize on positive market developments," Nokia said in a statement.

It said global mobile phone volumes grew by more than 25 percent in the first quarter while Nokia handset volumes rose by 19 percent.

Group sales by value fell two percent to 6.6 billion euros ($8.13 billion) versus a previous forecast of three to seven percent growth.