Nokia sees fall in Q1 profits, gives cautious outlook

Hit by a lower demand in mobile networks, Nokia has reported a first-quarter net loss of 513 million euros ($584 million) since it acquired Alcatel-Lucent, down from a stand-alone profit of 177 million euros a year earlier and warned of a further decline.

Nokia Corp. says combined net sales were 5.5 billion euros in the period, compared with 2.9 billion euros a year earlier when it had not yet merged with the French telecom.

CEO Rajeev Suri described the revenue decline as disappointing and said the climate remained "challenging," warning of further cuts and layoffs after the 15.6-billion-euros acquisition of Alcatel-Lucent.

Suri said Monday that Nokia had earlier noted it expected some "market headwinds in 2016 in the wireless sector, and we continue to hold that view today."