July 26, 2018 / 12:59 PM / 3 months ago

Nokia's IP routing business hit by component shortage: CEO

HELSINKI (Reuters) - Nokia’s (NOKIA.HE) second-quarter sales of IP routers were held back by component supply shortages, the network equipment maker’s chief executive said on Thursday.

FILE PHOTO: The logo and ticker for Nokia are displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 21, 2018. REUTERS/Brendan McDermid/File Photo

The Finnish company’s IP routing sales fell 9 percent in the second quarter to 592 million euros, compared to the group’s total networks revenue of 4.7 billion euros.

“Our performance in IP routing would have been meaningfully better if we had not faced some component supply issues in the quarter,” CEO Rajeev Suri told a conference call.

“There is tight supply for some standard components, such as various capacitors, dialers and transistors,” he said, citing growing demand for digital technology in the automotive and other sectors.

Reporting by Jussi Rosendahl; Editing by Edmund Blair

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