By Dominic Chopping

Nokia Corp. on Wednesday backed its 2020 and 2021 guidance as it updated on its previously announced operating model changes that aim to better position the company for changing markets and align it with customer needs.

The company said the immediate focus of its Mobile Networks unit will be on executing its turnaround and regaining 5G leadership. The unit is expected to deliver comparable operating margin of around 0% in 2021, and significant improvement over the longer term.

Comparable results exclude amortization of acquired intangibles, restructuring and other items affecting comparability.

The Network Infrastructure unit will focus on the building blocks and essential solutions of critical networks and is expected to deliver comparable operating margin in the high-single-digit range in 2021, and gradual improvement over the longer term.

Cloud and Network Services will facilitate the transition to cloud-native software and as-a-service delivery models and is expected to deliver comparable operating margin in the mid-single-digit range in 2021, and significant improvement over the longer term, Nokia said.

Nokia Technologies will continue to monetize and grow the value of Nokia's intellectual property and licensing revenue and is expected to deliver a slight improvement in comparable operating profit in 2021, relative to 2020, and stable performance over the longer term, it added.

The Group Common and Other unit predominately consists of corporate costs. It is expected to deliver a comparable operating loss of approximately 200 million euros ($243.1 million) in 2021.

Nokia said at its third-quarter results that it expects 2020 adjusted earnings per share of EUR0.23, plus or minus EUR0.03, and an adjusted operating margin of 9.0%, plus or minus 1 percentage point.

It said the adjusted operating margin in 2021 is expected at between 7% and 10%.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

12-16-20 0229ET