Nokian downgrades fiscal outlook
Nokian Tyres P.L.C. has downgraded its earnings and sales expectations for 2014 due to a weaker forecast for the economy in Russia and and the former Soviet Bloc nations.
Nokian cited a «clearly devalued» Russian rouble for hurting the Russian economy and the purchasing power of Russian consumers. Nokian derived 34 percent of its fiscal 2013 sales from business in Russia and other eastern European and central Asian nations of the Confederation of Independent States.
Nokian said it expects sales and earnings to fall short of its 2013 performance due to the situation in Russia, despite growth expectations in other key markets in the Nordic countries, Central Europe and North America. Previously Nokian had projected sales growth in 2014.
In fiscal 2013, Nokian reported operating profit of $512 million on sales of $2.02 billion, declines of 7.1 and 5.7 percent, respectively, from 2012. Net profit was $244 million.
Nokian also noted it «continues to have competitive advantages» from having manufacturing operations in Russia. It exports more than half of its Russian factory production, and is experiencing higher margins in this business as a result of the difference between production costs in roubles and export sales in euros.
However, the tire maker said, this is not enough to fully compensate for the weaker market conditions in Russia.
On the plus side, Nokian said it expects earnings to benefit by about $40 million due to lower raw materials purchasing costs.
Nokian will release its first-quarter 2014 financials on May 7.
Tags: Nokian, Nokian Tyres, tyres, Economic
Related items
-
Swedish retreader adds Marangoni technology
Italy—Swedish retreader Dacknor A.B. has partnered with Marangoni Retreading Systems to upgrade its offerings, according to a release issued by Roverto-based... Read more -
Disreputable traders, illegal tyres – association shares part-worn experiences
Although the National Tyre Distributors’ Association would like to see them banned and TyreSafe implores motorists not to buy these products, around 4.5 million part-worn tyres are sold in the UK each year. The Local Government Association (LGA) has now also highlighted some of its members’ experiences with the sellers of used tyres, and cautions motorists to exercise caution when... Read more -
Sri Lanka’s largest fully integrated tire plant to be built with Rs11.25bn
Rigid Tyre Corporation (Pvt.) Ltd. Equipped with the latest technology, this new plant is destined to roll in a new page in the industrial sector of Sri Lanka. It comes with the healthy integration of political acumen, local entrepreneurship and proven European technology in the form of a world reputation – Marangoni of... Read more -
ATG’s Constellation truck tyre brand not coming to Europe, for now
Shortly after its acquisition by Yogesh Mahansaria and private equity company Warburg Pincus in 2007, the Alliance Tire Group (ATG) exited the car and truck tyre market and began building up a strong reputation as an off-road tyre... Read more -
Michelin Unveils New UHP Tire at NAIAS
Michelin introduced its newest ultra-high-performance tire – the MICHELIN Pilot® Sport 4 S – today at the North American International Auto Show. The product succeeds the MICHELIN® Pilot® Super Sport, which is widely recognized as the industry-leading ultra-high-performance tire for original equipment and replacement... Read more
social