HELSINKI - Telecoms equipment maker Nokia said it is lowering its profit forecast due to the weaker dollar and US tariffs, as it reported second-quarter results.
The profit outlook for the full year is now between 1.6 billion and 2.1 billion euros ($1.9 billion to $2.5 billion), 300 million euros less than previously indicated, it said.
Currency fluctuations -- "particularly the weaker US dollar" -- and "the current tariff landscape" led to the revision, the Finnish company said in a statement to investors.
A weaker dollar is weighing on European companies with operations in North America, reducing turnover in euro terms and making euro-denominated exports to that market more expensive.
US President Donald Trump's 10 percent baseline tariff announced in April -- followed by threats to increase the tariffs on EU products to 30 percent after August 1 -- are weighing on other big European firms.
The United States has also imposed a 30-percent tariff on goods imported from China, while China imposes a 10 percent levy on goods brought in from America.
Nokia operates in both the US and Chinese markets.
Nokia said current tariffs were "expected to impact full year operating profit by 50 million to 80 million euros".
Nokia said its guidance is now based on a euro exchange rate of $1.17, compared with just above parity at the start of the year.
The company said preliminary sales in the second quarter were 4.6 billion euros, with a 300-million-euro operating profit.
Revenue was lower than the 4.8 billion euros that analysts consulted by Factset had been expecting.