Nokia Oyj’s adjusted profit dropped 29 percent in the second quarter from a year earlier after the 5G equipment maker was hit by impact from tariffs and a weak US dollar.

The Espoo, Finland based company’s adjusted operating profit was 301 million euros ($354 million) in the period, down from 423 million euros a year ago, it said in a statement Thursday. That compared with an average analyst estimate of 399 million euros in data compiled by Bloomberg. The 5G equipment maker cut 2025 guidance earlier this week.

Nokia is struggling to right its business as the Trump administration’s trade wars have rippled across supply chains and upended the economics of virtually every industry. For network-equipment makers, the trade turmoil is compounding an already difficult market, with Nokia and rival Ericsson AB fighting for business as operators have held back on expensive network upgrades.

A weaker dollar is dragging down the financial results for a number of companies that sell into the US. Nokia said earlier this week that currency devaluations would reduce profit by about 230 million euros this year. Tariffs will be another 50 million euros to 80 million euros hit. Nokia said its venture funds took a 50 million euros non-cash charge in the second quarter, hit by the currency fluctuations.

Chief Executive Officer Justin Hotard took over last quarter and is facing a series of complications, besides the threat of tariffs and currency fluctuations, as the telecommunications industry works to overcome a slump that’s led providers to scale back spending. Nokia expects operating profit for the year to be 1.6 billion euros to 2.1 billion euros, compared to as much as 2.4 billion euros that it forecast previously, the company said late Tuesday.

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“We need to continue to evolve how we work so we move faster, improve productivity and focus on what brings value to our customers,” Hotard said in the Thursday statement. “As a result, we’re unifying our corporate functions to simplify how we work, build a more cohesive culture and begin to unlock operating leverage.”

Sales are expected to improve in the second half of the year, Hotard said on a media call on Thursday. Mobile operators are expected to ramp up spending in India, which had dropped off in recent quarters. Still, the company could be hit again if the dollar stays unstable, with a 10 million euros to 15 million euros impact on operating profit for every 1 cent change in the dollar-euro exchange, he said.

The company’s mobile networks business, its second largest unit, was a drag on Nokia’s net sales in the quarter after revenue dropped 13 percent from a year ago, excluding currency impacts. The company said much of the decline is down to a one-time payment last year after settling an outstanding contract with AT&T Inc. The US telecom operator gave a $14 billion network deal to Nokia’s rival Ericsson.

Overall sales rose 2 percent from a year ago to 4.55 billion euros in the quarter. Analysts had anticipated 4.78 billion euros, according to the Bloomberg-compiled estimate.

Ericsson last week forecast disappointing networks sales growth in the third quarter, with the outlook for seasonal growth suggesting the market for 5G network equipment remains fragile.

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Nokia shares fell 7.6 percent on Wednesday in Helsinki after it cut its outlook. They are down 12 percent this year.