Nokian expects recovery after "demanding" second quarter

Nokian, Finland – Nokian Tyres has reported* a 12% year-on-year decline in second quarter sales to €293 million, largely due to lower passenger car tire volumes.

Earnings ('segments operating profit') for the period to 30 June turned positive at €15 million, up from €0.9 million year before and a loss of €14 million the previous quarter.

Over the first six months, sales dipped 19% year-on-year to €530 million, while 'segments operating profit' fell 97% at €1.1 million – again reflecting lower volumes.

In addition to “demanding” car and tire markets, Nokian "faced some currency headwinds, impacting its net sales negatively” according to president and CEO Jukka Moisio.

“We expect the second half of 2023 to be stronger due to winter and all-season tire sales and contribution from contract manufacturing,” Moisio added in the 21 July report.

During the second quarter, he noted, Nokian progressed its investments in new capacity, including the start of building work on its new passenger car tire factory in Romania.

For full-year 2023, Nokian's financial guidance has remained unchanged, with sales expected to come in at between €1.3 billion and €1.5 billion.

Nokian expects a 'segments operating profit' percentage of net sales of 6–8%: noting "that due to seasonality, the segments operating profit will be generated in the second half."

*As of 2023, segments net sales and segments operating profit exclude Russia and other items, which are not indicative of Nokian Tyres’ underlying business performance.