Nokian Posts Full-Year Sales, Profit Declines
Nokian Tyres plc's net sales in 2020 totaled 1.3 billion euros, a decline of 13.3% from full-year 2019 results. The company's operating profit also declined during 2020, totaling 190.2 million euros.
“Our October-December 2020 sales continued to be impacted by COVID-19, as restrictions were again tightened in many countries," says Nokian President and CEO Jukka Moisio, who adds that passenger tire sales "were also negatively impacted by a delayed winter season in main markets."
However, Nokian's heavy tire business "continued to perform well, considering the volatile market."
The company expects to see sales and operating profit gains during 2021. "Global car and tire demand is expected to pick up," say Nokian officials.
"We have progressed on our key projects to support the company’s long-term growth," notes Moisio. "We began commercial tire production in (our) U.S. factory and are completing our new test center in Spain. The project to increase heavy tires' capacity in Finland is proceeding as planned.
"These investments, together with innovative new products and robust sales and marketing efforts, will provide an excellent foundation to capture profitable growth opportunities as we move forward.
"We are starting 2021 in a good position," he explains.
"We will drive growth through new product launches and improvements in go-to-market activities. Cash flow will continue to be in focus, with prioritized investments on a lower level compared to previous years. In the coming months, we will review our strategy to continue to deliver positive long-term results to our stakeholders.”
Nokian recently introduced the Nokian One, an all-season passenger tire that will be exclusive to the North American market. The tire will be manufactured at Nokian's plant in Tennessee.