Nokian delivers sales growth despite first-half challenges

Nokia, Finland - Nokian Tyres has reported net sales of €561.2 million for the first six month of 2024, with comparable currencies, 6.8% higher than the same period last year.

Earnings, expressed as 'segments operating profit' came in at €5.0 million, while 'operating profit' was recorded as minus €17.8 million – compared to equivalent results of €1.1 million and -€9.4 million respectively in H1/23.

During the first half, Nokian noted a €20-million impact from the Red Sea crisis and strikes in Finland –February-Apri: causing lost production, shipment delays, and increased logistics costs.

Business momentum increased in the second quarter, net sales lifting 11.2% year-on-year to €324.6 million, with ‘segments operating profit’ at €20.1 million (€15.2 in Q2/23) and operating profit reaching €8.4 million (€9.5 in Q2/23).

Net sales of passenger car tires increased by 16.1% year-on-year to €331.9 million in the first half and by 23.7% to €188.8 million in the second quarter.

Net sales of heavy tires fell 15.0% year-on-year to €115.3 million in the first half and were down by 10.7% to €60.2 million in the second quarter.

Nokian went on to issue "unchanged" guidance for full-year 2024: net sales with comparable currencies and 'segments operating profit' expected to grow "significantly" versus the prior year.

“In April–June 2024, our net sales increased clearly driven especially by Central Europe," commented Jukka Moisio, president and CEO.

“Sales growth in passenger car tires continued as a result of improved product availability and higher sales volume," added the Nokian leader.

A weak OE market continued to impact 'heavy tyres’ net sales, while 'segments operating profit' improved on sales volume growth and lower raw material costs.

“The car and tire market continues to be demanding due to economic uncertainties and low consumer confidence, Moisio further pointed out.

Due to seasonality, the tire maker expects “sales growth and [higher] segments operating profit to be generated in the second half of the year.”