In the second quarter financial results announced on the 21st by Finnish telecommunications equipment giant Nokia, operating profit exceeded market expectations. Demand for 5G (5th generation communication) equipment was strong.


The company said the global semiconductor shortage is expected to ease from the second half of this year to the first half of next year.


Nokia stocks rose 7% at one point following good financial results.


"The overall direction of the semiconductor industry is bright at this point, but there were still constraints in the second quarter," said Pekka Lundmark, CEO, in an interview. Growth was accelerating. "


Supply chain disruptions have led to higher costs, lower profit margins, and higher prices.


The full-year net sales forecast remains unchanged at € 23.5 billion-24.7 billion. The comparable operating margin outlook has also remained unchanged at 11-13.5%.


Compared operating profit for the second quarter was € 714 million ($ 729.71 million), up from € 682 million in the previous year. It exceeded the market forecast of 636.52 million euros compiled by Refinitiv.


Nokia has passed on the increased costs to all new contracts, but it's difficult to pass on prices to existing customers, Lundmark said.


Net sales increased 11% to € 5.87 billion, surpassing market expectations of € 5.6 billion.