Nokian posts Q1 dip ahead of Romania tire plant build

Nokia, Finland – Nokian Tyres plc is set to start construction of its greenfield passenger car tire production facility in Romania over the “next couple of weeks”.

The Finnish tire maker included the project update in its latest quarterly results, showing lower sales and earnings due to the company’s exit from Russia in March.

First quarter sales fell 26.8% year-on-year to €285 million, reflecting a 63% decline in passenger car tire volumes during the three months to end of March.

Earnings (EBITDA) decreased 70% year-on-year to €18.5 million, on lower volumes as a result of Nokian exiting its Russian operations.

Nokian reported an operating loss of €14 million for the quarter, down from a profit of €35 million reported in the same period a year ago.

The tire maker said it expects to generate operating profit in the second half of the year, helped by "seasonality” in the market.

“One of our key priorities is a new factory in Romania, the world’s first zero CO2 emissions tire factory, which is progressing as planned,” said president and CEO Jukka Moisio.

According to Moisio, while capacity build-up is ongoing within core markets, the first half of this year will be demanding because of supply shortages.

“The second half is expected to be stronger due to winter and all-season tire sales and contribution from contract manufacturing,” added the Nokian leader.