Nokia shares fell sharply yesterday after the company cut its forecast for 2Q sales, and abandoned full year estimates entirely.
The company warned that sales for the quarter will likely be “substantially below” the previously forecast €6.1 billion to €6.6 billion. It did not provide updated figures.
Nokia's Helsinki-listed stock slumped 17.53% in Tuesday's trading following the downgrade to the lowest point since the late 1990s. Its NYSE shares fell 14.39% to $7.02 (€4.88).
Nokia blamed the expected decline on a deterioration of operating margins, which are now anticipated to be only around breakeven instead of the previously forecast 6% to 9%. Sales and average selling prices are also lower than expected.
The firm now expects full year operating margin of between 6% and 9%, but said it is no longer appropriate to provide annual targets.
CEO Stephen Elop said the company must speed its transition to Windows Phone, stating it has “increased confidence” it will ship its first device on the operating system in 4Q11.
Bloomberg calculates that Nokia's Helsinki shares have fallen 37% during Elop's eight months at the helm.