Nokian laments lack of Russian demand

Posted on April 9, 2014

Nokian Tyres plc will release its first-quarter 2014 financial results on May 7, 2014. Of note: The results in Russia will be less than the company forecasted.

"Due to a weaker forecast for the economy in Russia and CIS (the Commonwealth of Independent States, formerly the USSR)," Nokian says it will downgrade its guidance for 2014. That includes overall net sales and operating income.

"The clearly devalued rouble has hurt (the) Russian economy and the purchasing power of Russian consumers, thus weakening tire demand and Nokian Tyres’ sales in Russia," says the company (45% of the company's tire production in Russia is earmarked for Russia).

Nokian estimates sales in 2014 were up in all its western markets: the Nordic countries, Central Europe and North America.

According to Nokian, it improved its market position on all end-user markets in 2013, "a good platform for growth." Lower raw material costs are estimated "to provide a tailwind of approximately 30 million euros in 2014, supporting profitability."

On April 8, 2014, Nokian's board of directors approved a dividend of 1.45 euro per share. It will be paid for the period ending on Dec. 31, 2013. The dividend shall be paid on April 25, 2014, to shareholders included in the shareholder list maintained by Euroclear Finland Ltd. on April 11, 2014.

There are seven members on the Nokian board: Kim Gran, Hille Korhonen, Risto Murto, Hannu Penttilä, Petteri Walldén, Raimo Lind and Inka Mero.

Related Topics: Nokian financials, Plants, raw material costs, Russia

Comments ( 0 )
More Stories
News 3 Ways Self-Driving Vehicles Will Change the Future of Tire Retailing

Autonomous vehicles are expected to change tire buying behavior along with consumer driving habits. In this Modern Tire Dealer exclusive, Marc Belanski, president of shop management software developer ASA Automotive Systems Inc., identifies three trends that will affect the business of selling tires.    

Prior to working at Hennessy, Mark Earl had served at Danaher Corp.
News Mark Earl Will Lead Nokian's Growth Strategy in North America

Mark Earl is joining Nokian Tyres plc and will be in charge of implementing the tire company's growth strategy in North America. Earl, the current president of Hennessy Industries Inc., will serve as vice president of the Americas Business Area for Nokian.  

European tire retreading needs a promotional upgrade.
Article A Profitable Future for Tire Retreading?

All around the world the professional retreading of tires is considered to be an important aspect of our industry, especially when it comes to the commercial vehicle sector, and Europe is certainly no exception.

Be the First to Know

Get the latest news and most popular articles from MTD delivered straight to your inbox. Stay on top of the tire industry and don't miss a thing!