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Tue October 22 07:30 pm 2019 in category Stock exchange releases

Nokian Tyres plc lowers its guidance for 2019

Nokian Tyres plc Inside Information October 22, 2019, 7:30 p.m.

Due to weakened car and tire markets, Nokian Tyres plc lowers its earlier guidance for the full year 2019. The company expects markets to remain soft, and Nokian Tyres continues to adjust capacity in its factories accordingly.

Despite the headwind in the market, Nokian Tyres focuses on executing its strategy. In October, the company reached a significant milestone when it celebrated the opening of its new US factory in Dayton, Tennessee. The commercial tire production in US will start in January 2020. In addition, the construction of the new testing center in Spain and the project to increase Heavy Tyres’ capacity are proceeding according to plan.

Updated guidance for 2019:

In 2019, net sales with comparable currencies are expected to be approximately at the level of 2018 and operating profit margin to be approximately at the level of 20%. In line with Nokian Tyres’ updated 2018 strategy, the company is targeting further growth in Russia, Central Europe, and North America. As a result of ongoing investment programs to support the growth, operating profit in 2019 will include significant additional operating costs.

Earlier guidance from June 14, 2019:

In 2019, net sales with comparable currencies are expected to be slightly higher and operating profit to be lower compared to 2018. In line with Nokian Tyres’ updated 2018 strategy, the company is targeting further growth in Russia, Central Europe, and North America. As a result of ongoing investment programs to support the growth, operating profit in 2019 will include significant additional operating costs.

Nokian Tyres plc  

Päivi Antola, SVP, Communications and IR

Further information: 

Teemu Kangas-Kärki, CFO, tel: +358 10 401 7750
Päivi Antola, SVP, Communications and IR, tel: +358 10 401 7327
  

Distribution: Nasdaq Helsinki, media and www.nokiantyres.com