REVIEW BY THE PRESIDENT AND CEO
Interim Report January–March 2024, April 29, 2024
Jukka Moisio, President and CEO:
“The first quarter net sales and segments operating profit were at previous year’s level. The car and tire market continues to be demanding due to economic uncertainties and low consumer confidence. During the first quarter, we faced additional disadvantages due to the Red Sea crisis as well as the political strikes in Finland. Due to the strikes in February–April, we lost in total approximately three weeks of production in Passenger Car Tyres and one week in Heavy Tyres. The negative financial impact of the political strikes and the Red Sea crisis is approximately EUR 20 million in EBITDA, of which more than half in Q1.
Despite these setbacks we continue building the new Nokian Tyres according to our plans. Important and exciting milestones will be reached in 2024, when we celebrate the 90th anniversary of our innovation, the winter tire. Our new and the world’s first zero CO2 emission tire factory in Romania will start production, US investment phase will be completed, and new innovative products will be launched.
We are taking firm steps forward in sustainability. During the quarter, we scored an A- from CDP for our actions aimed at reducing greenhouse gas emissions and mitigating climate change-related risks. Scores A and A- represent leadership level. In February we also announced a long-term purchase agreement for recovered carbon black with a tire recycling joint venture. The agreement will help Nokian Tyres reach one of its key sustainability targets, which is to increase the share of recycled and renewable raw materials in tires to 50 percent by 2030.
Tire sell-in is expected to grow in 2024, and with our increasing capacity and competitive product portfolio, we are ready to seize this opportunity. Due to seasonality, the sales growth and segments operating profit are expected to be generated in the second half of the year. Our strong balance sheet enables us to both continue executing on our clear growth strategy toward EUR 2 billion net sales with strong profits and reward our shareholders.”
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Nokian Tyres Annual Report 2023 was published on March 1, 2024
Read the newest CEO's review from pages 7–8.
Nokian Tyres Sustainability Report 2023 was published on March 28, 2024
Read the newest CEO's review from page 5.