Retail

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

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