Interim Report January–March 2021, May 4, 2021

Jukka Moisio, President and CEO: 

“Demand for replacement tires has recovered rapidly since the end of 2020. In the first quarter, we reached an all-time high sales volume. Thanks to a great performance by all our business units and business areas, net sales increased by 28.5% with comparable currencies. Segments operating profit grew substantially driven by higher sales volume.

In Passenger Car Tyres, volume growth was particularly strong in Russia as we gained market share especially in summer tires. On the other hand, a weak Russian ruble together with the higher share of Russian volume had a significant negative impact on the average sales price. Heavy Tyres reached an all-time high quarterly net sales and segment operating profit.

To ensure the availability of our premium products, we have operated the Russian factory at full capacity. In the US, we continue to ramp-up production to reach an output of around one million tires in 2021. In Finland, we are increasing our production capacity for passenger car tires by approximately 30% this year as announced in March. Raw material costs are estimated to increase significantly in the second half of the year compared to 2020.

In 2021, our focus will remain on growth and cash flow. New products and continuous improvements in go-to-market activities will help us build an even stronger foothold in our core markets. We want to benefit from a good momentum in the market while still acting prudently to keep our company strong and competitive for years to come.”