HELSINKI, Finland—New warnings from a Nokia Corp. parts supplier could foreshadow trouble with the handset vendor’s third and fourth quarter sales.
Elcoteq, which makes components for Nokia phones, warned that its third-quarter net sales will be below those of last year, and that its operating income too will be weaker compared with the same period last year. The company blamed the sluggish numbers on “weaker than expected development of manufacturing volumes in Europe and unsatisfactory profit growth in the Americas.”
Nokia investors, fearing that Elcoteq’s warning could forecast a drop in sales for the world’s leading handset vendor, dumped Nokia shares following the announcement. Nokia’s stock was down around 2 percent following the news to about $19.46 per share.
However, Elcoteq sounded a positive note.
“The company’s long-term prospects have not changed and we expect both net sales and operating income to return to growth,” said Jouni Hartikainen, the company’s president and chief executive officer.
Last year, Nokia and L.M. Ericsson accounted for almost 70 percent of Elcoteq’s sales. The firm builds components for mobile phones and other communications products.
