Nokia shares jump after cull of low-margin business sees earnings beat

HELSINKI/STOCKHOLM (Reuters) – Finnish telecom network equipment maker Nokia reported an unexpected rise in second-quarter underlying profit on Friday as it took on less low-margin business particularly in China, sending its shares up 13% in early trade.

FILE PHOTO: The logo of Nokia is seen before the company’s news conference in Espoo, Finland March 2, 2020. Lehtikuva/Markku Ulander via REUTERS

Cutting less-profitable service business and not winning 5G radio deals in the cut-throat Chinese market helped Nokia, where new Chief Executive Pekka Lundmark takes over this weekend, upgrade its earnings outlook for 2020.

“We do not mind trading poor revenue which doesn’t have high quality margin for better revenue,” outgoing chief executive Rajeev Suri told Reuters.

Nokia said its underlying earnings in April through June rose to 0.06 euros per share from 0.05 euros a year ago, beating the 0.03 euros consensus in a Refinitiv poll.

Nokia, which had warned

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Israeli chipmaker Tower profit dips, sees some markets growing

JERUSALEM (Reuters) – Israeli chip manufacturer Tower Semiconductor (TSEM.TA) matched forecasts for unadjusted quarterly earnings, saying a downturn in its medical X-ray and automotive business had been offset by sales of mobile and power management chips.

Tower (TSEM.O), whose shares were down 7.4% in early Nasdaq trade, said earnings per share for April to June was 18 cents, down from 20 cents a year earlier but in line with expectations, according to I/B/E/S data from Refinitiv.

Second quarter diluted earnings per share excluding one-time items was 22 cents, down from 24 cents and missed forecasts by 1 cent.

Chief Executive Russell Ellwanger said manufacturing had not been disrupted by the coronavirus crisis, although the company formerly known as TowerJazz had felt an impact in some of the industries it supplies.

“But we have several markets that are really growing for us. That’s a function of entering

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ASMI sees lower sales in third quarter after solid seond quarter

(Reuters) – Dutch semiconductor manufacturing equipment supplier ASM International NV (ASMI.AS) said on Tuesday it expects third-quarter sales to fall from the previous quarter, which was boosted by continued high demand from data processing chip makers and semiconductor production plants.

The company sees sales between 300 million euros and 320 million euros ($351.87 million-$375.33 million) in the July to September period, compared with 342 million euros in the quarter ended in June, which was in line with its earlier forecast.

“Supply chain and logistical conditions resulted in operating challenges during Q2, but started to improve towards the end of the quarter,” said Chief Executive Benjamin Loh.

ASMI added it expects fourth-quarter sales to be at least on the same level as the third one.

The company, which provides semiconductor manufacturing equipment for chipmakers and semiconductor fabrication plants, is sensitive to demand shifts in end markets, such as smart

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New York Times CEO sees risk in regulating Google, Facebook to help news media

FILE PHOTO: Mark Thompson, president and CEO of the New York Times Company, poses for a portrait in New York, November 26, 2013. REUTERS/Lucas Jackson

(Reuters) – Regulation intended to address the news industry’s problems with Google and Facebook could have adverse consequences, said outgoing New York Times Co (NYT.N) Chief Executive Officer Mark Thompson in an interview this week.

The news industry has seen its business model upended by tech giants like Alphabet Inc’s Google (GOOGL.O) and Facebook Inc (FB.O), which have siphoned online advertising dollars from publishers and which distribute news articles without paying the outlets that produce them.

Thompson, who has helped lead the Times’ transformation to a “subscription-first business model” said this week that if a news organization is too dependent on digital advertising, it is a “straightforward competitor” with the major platforms that are also selling advertising – a

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