Nokia’s new CEO, Justin Hotard, is open to expanding the company’s U.S. manufacturing capabilities to mitigate the impact of tariffs introduced during President Donald Trump's administration. The company predicts tariffs will have an approximately $22 million to $34 million impact on its second-quarter comparable operating profit. The value of the Finnish telecommunications company’s shares dropped by 6% on Thursday following weak first-quarter earnings. Nokia reported a $68.2 million net loss in its first quarter, compared to $498 million a year earlier. However, according to The Wall Street Journal, the company's comparable operating profit plunged 74% to $177 million. Meanwhile, analysts had previously expected the company to earn $341 million and a net profit of $143 million, WSJ reported, citing FactSet. THESE COMPANIES HAVE ANNOUNCED THEIR INTENTION TO INCREASE US MANUFACTURING The company pointed to a $136 million settlement as one reason for its lower-than-expected first-quarter numbers. Hotard said the settlement was related to a customer project issue that has now been entirely settled. Despite its first-quarter performance, Nokia has not changed its outlook for 2025, in which it predicts a profit of $2.2 billion to $2.7 billion. However, Hotard — who has been CEO for about three weeks — admits that reaching the top end of the range will be "more challenging."

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