Nokia Turns the Light Out on Carrier Rebound

Updated from 7:55 a.m. EST

The telecommunications infrastructure market that turned Ericsson into an intermittent penny stock continues to bite Nokia(NOK Quote), which Tuesday trimmed its outlook for sales and earnings in the current quarter.

The handset giant predicted sales in its Nokia Networks operation would fall as much as 20% from a year ago, resulting in a sizable pro forma loss at the unit and eating into the parent's bottom line. Nokia shares were recently down about 3% on the Instinet premarket session, and pain was being felt in rivals Ericsson and Alcatel.

Overall, Nokia sees pro forma earnings of 17 cents to 19 cents a share, a range that reduces the high end by 2 cents but is in line with the First Call consensus of 18 cents. Sales will fall slightly from a year ago on flat sales in the cell-phone division. ...