Nokian Tyres raises full-year sales guidance

Nokia, Finland – Nokian Tyres plc has raised its full-year sales forecast despite volumes being impacted by the Russian war on Ukraine.

In a trading update 28 Oct, Nokian said the war in Ukraine and the ensuing sanctions on Russia had a significant negative impact on the company’s supply capacity and performance.

Discontinued supply of tires from Russia, it went on to say, was impacting sales, especially in central Europe.

“However, tire demand has remained good and Nokian Tyres has succeeded in implementing price increases to mitigate cost inflation,” the company statement said.

In addition, currency exchange rates have positively affected net sales, the Finnish group added.

As a result, Nokian anticipates net sales to come in at the prior-year level or higher.

In its earlier guidance in June, the tire maker forecast sales to come in on par with last year's level, or decrease.

However, the outlook for segment operating profit remains unchanged, as Nokian anticipates a “significant decrease” on its 2021 level.

For 2021, Nokian reported net sales up 30.5% year-on-year to €1.7 billion, while  operating profit more than doubled to €268.2 million.

The gains recorded last year reflected recovery from the business impact of the global pandemic.