Economic|Interim reports
Nokian Tires’ turnover in April–June was 482 million euros, which is about 16 percent more than in the comparison period a year earlier. In comparable currencies, however, turnover only increased by 7.4 percent.
Vehicles tire manufacturer Nokian Renkaat says that the withdrawal from Russia will significantly affect its results this year.
In connection with its second quarter results announcement, the company said that in the second quarter, it made more than 300 million euros in value reductions and write-downs as part of its withdrawal from Russia.
Managing director Jukka Moisio says in the earnings release that the company’s board decided in June to start withdrawing from Russia, because Nokian Tires no longer has the conditions to continue its operations in Russia in a sustainable manner.
“We are currently evaluating different withdrawal options, and discussions with potential buyers are ongoing. In the future, we will focus on growth opportunities in our other core markets, excluding Russia,” says Moisio.
Moisio According to
Last year, Russia’s share of Nokian Tires’ turnover was 20 percent. 80 percent of the company’s passenger car tires were manufactured in Russia.
“We work in many areas to secure the availability of our products. We have continued to increase capacity at our factories in Finland and the United States, and promoted investment in new production capacity in Europe, which is one of our most important priorities in the medium term,” says Moisio.
The company turnover in April–June was 482 million euros, which is about 16 percent more than in the comparison period a year earlier. In comparable currencies, however, turnover only increased by 7.4 percent.
Nokian Tires’ operating result fell to a loss of approximately EUR 203 million from the comparison period’s EUR 82 million profit, but the adjusted operating result was EUR 86.3 million profitable in the second quarter. A year earlier, the company’s adjusted operating profit was just under 89.6 million euros.
Currencies had a positive impact on the adjusted operating profit in the second quarter by around 17 million euros.
According to CEO Moisio, the slight drop in adjusted operating profit was due to lower sales volumes due to delivery restrictions.
Adjusted operating profit exceeded market expectations.
Nokian After the earnings announcement, the tire share went down sharply. At 3:30 p.m., the share had fallen by 8.7 percent.
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