Nokian more than doubles operating profit on ‘record high’ sales

Nokia, Finland – Nokian Tyres has seen a significant increase in yearly operating profit as the tire maker posted ‘record high’ sales.

Net sales came in at €1.7 billion in 2021, up 30.5%, compared to the year before, said Nokian in a statement 8 Feb.

Operating profit more than doubled to €268.2 million, compared to €120 million reported last year. 

Fourth quarter operating profit, however, fell by more than 25% to €53 million, while sales grew 24% to €512.6 million.

Nokian linked the fourth quarter decline in profit to ‘sharp increases’ in raw material and logistics costs in the second half of last year. 

“We responded to this with sales price increases,” said Jukka Moisio, president and CEO. 

Inflationary pressures, Moisio went on to say, are expected to continue in 2022, requiring “systematic price increases and careful cost control going forward.”

Over the full year, Nokian’s passenger car tires segment saw operating profit improve by 68% to just under €300 million, on 37.8% higher sales at €871 million.

Heavy tires reported 70% increase in operating profit to €40 million, on 29% higher sales of €254 million.

The distribution and after-sale service segment Vianor remained flat with operating profit coming in at €4 million and sales up 4.2% at €343 million.

In 2022, Nokian said it expected net sales with comparable currencies to “grow significantly” and segments operating profit is expected to grow.

The tire maker said it anticipated that the global car and tire demand will grow during the year. 

“The Covid-19 pandemic continues to cause uncertainties, including cost inflation and availability challenges, in the whole automotive value chain,” it added.