REVIEW BY THE PRESIDENT AND CEO

Interim Report January–September 2021, November 2, 2021

Jukka Moisio, President and CEO: 

“In July–September, we achieved a record-high third quarter net sales. Thanks to a great performance by all our business units and business areas, together with early timing of deliveries, net sales with comparable currencies increased by 24.6%. Segments operating profit grew significantly driven by higher sales volume.

As anticipated, increased raw material and logistics costs, including the shortage of container capacity, were visible in the third quarter. We have taken mitigating actions, including price increases, to reduce the impact of cost inflation. These actions led to a higher Average Sales Price in the third quarter. We have announced further prices increases in a wide range of markets and products, and we will continue to carefully control costs, as cost inflation is expected to continue.     

We operated the Russian factory and Heavy Tyres’ factory at full capacity to ensure the availability of our premium products. In the US, we continued 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.

In September, we announced Nokian Tyres’ revised growth strategy and updated financial and non-financial targets. Non-financial targets focus on bringing new environmental and safety innovations to products, reducing CO₂ emissions, further improving workplace safety, and monitoring the sustainability of suppliers. Our financial targets are to reach EUR 2 billion in net sales and keep the profitability on a high level by targeting segments operating profit and segments ROCE to be at the level of 20%. After the third quarter, last 12 month rolling net sales were EUR 1.6 billion, segments operating profit 19.6% and segments ROCE 14.4%. These results confirm that our team is on the right track.”

 

REPORTS AND PRESENTATIONS