Nokian Tyres Q2 swings to loss as Russia exit weighs, Auto News, ET Auto
Finland’s Nokian Tyres on Tuesday posted a surprise loss for the second-quarter as its exit from Russia weighed heavily on earnings and the tyre maker said it expects profitability to weaken significantly compared to 2021.
“Discontinued supply of tires from Russia will have an adverse impact on sales especially in Central Europe in the second half of 2022,” Chief Executive Jukka Moisio said in a statement.
Moscow’s attack on Ukraine and sanctions put in place by the European Union has forced Nokian to halt production at its largest production plant near Russia’s St Petersburg where the company used to make 80% of its passenger car tyres.
April-June operating result swung to a loss of 203 million euros ($207.6 million) from a year-ago profit of 81.8 million, missing the 33.1 million euro profit mean estimate in a company-provided poll.
Impairments and write-downs amounted to 300.7 million euros in the quarter, Nokian said.
The company’s share price fell by more than 11% after results were published at 1100 GMT, lagging a 1.5% fall in Helsinki’s benchmark index.