Nokia expects production disruption from earthquake and tsunami
The company did not quantify or detail this in any way saying that the disruption will result from a "currently anticipated" industry-wide shortage of relevant components and raw materials sourced from Japan.
Nokia said it does not expect any impact on its 1Q11 financial results. The company said it would continue to monitor the situation and would provide more detailed information on or before April 21, when it will give its next quarterly results presentation.
"First and foremost, our thoughts are with those affected by the earthquake in Japan. We are working hard to support our employees, their families, as well as disaster relief efforts through the Japanese Red Cross," said Niklas Savander, executive vice president for markets at Nokia, in a statement. "We are in constant dialogue with our suppliers and with their extended supply chain in the region. Nokia’s supply chain management system is designed to mitigate operational disruptions by using alternative sources for components and production processes. In an effort to minimize the impact, Nokia will continue working with suppliers inside and outside of Japan."