Guidance for 2022, published on April 27, 2022
The war in Ukraine and resulting sanctions cause significant uncertainty to Nokian Tyres’ operating environment. Nokian Tyres’ net sales and segments operating profit in 2022 are expected to decrease significantly compared to 2021.
Assumptions for 2022
The war in Ukraine and resulting sanctions are severely impacting Nokian Tyres’ operating environment and causing significant uncertainty. Restrictions in manufacturing in Russia are estimated to have an adverse impact on the company’s supply capacity, impacting sales especially in Russia and Central Europe, in particular in the second half of 2022.
In Russia, the sales of new cars are expected to decrease by up to 50% compared to 2021, due to the impact of sanctions, supply chain disruptions, increased prices and decreased purchasing power. The total replacement tire market sell-in in Russia in 2022 is expected to decrease by 20–25% compared to 2021, driven by the overall economic decline, lower disposable incomes, decreased new car sales and supply constraints.
The unpredictability in the development of the Russian ruble exchange rate causes uncertainty in 2022. The ruble has weakened in recent years and the average EUR/RUB was 72.5 in 2019, 82.7 in 2020, 87.2 in 2021, and 98.0 in January–March 2022.
Raw material and logistics costs are estimated to increase significantly in 2022.
The demand for Nokian Heavy Tyres’ core products is estimated to continue strong in 2022. Aftermarket demand is expected to continue healthy and OEM demand is expected to grow from
2021 level. However, the war in Ukraine causes uncertainty, and supply chain constraints and component shortage may affect customers’ ability to grow and invest in their business.
PREVIOUSLY PUBLISHED GUIDANCE
Withdrawal of guidance on February 28, 2022:
Due to the uncertainties caused by the war in Ukraine, the Board of Directors of Nokian Tyres plc decided on February 28, 2022 to withdraw the Company’s financial guidance for 2022 published on February 8, 2022.
Earlier guidance for 2022 from February 8, 2022:
In 2022, Nokian Tyres’ net sales with comparable currencies are expected to grow significantly and segments operating profit is expected to grow. The global car and tire demand is expected to grow. The COVID-19 pandemic continues to cause uncertainties, including cost inflation and availability challenges, in the whole automotive value chain. In addition, current geopolitical situation causes uncertainties in 2022.