Review by the President and CEO
Half Year Financial Report January–June 2020, August 4, 2020
Jukka Moisio, President and CEO:
“Nokian Tyres’ 2020 second quarter results were strongly impacted by the COVID-19 pandemic. While the wide-ranging restrictions have been necessary for health and safety reasons, lockdowns have led to a sharp drop in the global car and tire demand. Consequently, net sales of Passenger Car Tyres and Heavy Tyres declined in the second quarter. In addition, Passenger Car Tyres sales were negatively impacted by the measures taken in Russia to reduce high carry-over stocks in the distribution channel, as announced early 2020. Vianor’s performance was excellent in the difficult circumstances.
I am pleased that our rapidly implemented measures to prevent the COVID-19 spread and to maintain business continuity have proven to be effective. This would not have been possible without a high level of commitment and flexibility of our team members. Despite the exceptional situation, our strategy and short-term priorities are clear: We provide our customers with world-class products and services while keeping costs in strict control and protecting cash flow by cutting back investments, managing working capital, and delaying activities.
Nokian Tyres has a strong balance sheet, and we have further strengthened our liquidity position in the first half. In addition, cash flow from operations turned positive in the second quarter as we managed our cash flow and took manufacturing downtime to reduce inventory levels.
Looking beyond the current headwinds, there are many opportunities around us to develop business further. We have invested significantly in the past quarters, and the capacity and capability now available will help us increase sales when the market rebounds. With our valued brand and a strong, capable team that has performed well during this exceptional situation, we will be successful in quarters to come.”