Fox Business Flash: Top Headlines for April 23
Nokia executive considers increasing U.S. production to bypass Trump's import taxes.
Here's what's making headlines on FoxBusiness.com.
Stuck in a pickle due to Donald Trump's tariffs, Nokia's new CEO, Justin Hotard, is contemplating beefing up the company's U.S. manufacturing game to avoid taking a hit.
The tech giant anticipates that tariffs will knock its Q2 comparable operating profit by a smackin' $22 million to $34 million. The Finnish telecom company's shares took a nose dive by 6% on a Thursday following dismal Q1 earnings.
In its Q1, Nokia reported a $68.2 million net loss, which is a far cry from the $498 million it scooped up a year prior. But according to The Wall Street Journal, its comparable operating profit plummeted a whopping 74% to $177 million. Analysts had initially projected a cool $341 million profit and $143 million net profit. Ouch!
*TECH BOSSES BREAK OUT THE AMERICAN DREAM DOLLARS*
Nokia's finger-pointing blame game singled out a $136 million settlement as one contributor to its poor showing in Q1. Hotard cleared the air, insisting that the settlement was tied to a customer project mess, now long settled.
Despite the down-and-out Q1, Nokia hasn't given its 2025 outlook the heave-ho. It's still forecasting a profit range of $2.2 billion to $2.7 billion. But Hotard, a spankin' new CEO with barely a three-week track record, admits that reaching the upper spectrum is gonna be a doozy.
*TRUMP'S TARIFFS: WHAT THE HECK IS GOING ON?*
Even with Nokia's Q1 fumble, Hotard ain't seen Netflix and chill levels of demand due to U.S. tariffs. Yet, he's spotted a pivotal moment to evaluate Nokia's U.S. investments.
"Where our headquarters lays ain't what we're chattin' about here. It's about investment in research and development (R&D) and manufacturing capability," Hotard told Reuters.
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Hotard further spilled the beans to the Financial Times (FT) that he'd entertain the idea of pumpin' up U.S. manufacturing to create "additional resiliency" against tariffs. FT reports that Nokia, as presently constituted, boasts five manufacturing facilities on U.S. soil.
"Now if there's room to beef up those U.S. factories and grow our market share in the process, that's something that'll catch my eye," Hotard shared, quoting FT.
In recent times, several big-name companies have caught the manufacturing in the USA fever to slither around tariff obstacles. The roster of adopters includes Chobani, Johnson & Johnson, Apple, and Abbott Laboratories, according to CBS News.
- Nokia's new CEO, Justin Hotard, is considering increasing the company's U.S. manufacturing to mitigate the impact of Donald Trump's tariffs.
- The tech company, Nokia, anticipates a decrease in its Q2 comparable operating profit due to tariffs, amounting to $22 million to $34 million.
- Despite the negative Q1 earnings and a significant drop in comparable operating profit, Nokia's CEO, Justin Hotard, remains optimistic about the company's 2025 outlook.
- In a conversation with Reuters, Hotard highlighted the importance of investments in research and development (R&D) and manufacturing capability for Nokia.
- Hotard has expressed interest in expanding U.S. manufacturing, not only for resiliency against tariffs but also to potentially grow the company's market share in the U.S. industry.
