Fri January 24 08:00 am 2020 in category Stock exchange releases
Nokian Tyres plc confirms its guidance for 2019 and provides preliminary outlook for 2020
Nokian Tyres plc Inside Information January 24, 2020, 8:00 a.m.
Nokian Tyres plc confirms its guidance for the full year 2019 and provides preliminary outlook for 2020. In line with the guidance given in October 2019, net sales in 2019 with comparable currencies were approximately at the level of 2018 and operating profit margin was approximately at the level of 20%. In 2020, Nokian Tyres net sales with comparable currencies are expected to decline and operating profit to be significantly below the level of 2019.
In 2019, the car and tire markets continued to be soft in Europe, which resulted in tightening competition. Winter tire demand in October-December was negatively impacted by the warm winter in Nokian Tyres key markets. During the year, the Russian market declined against the expectations. Low consumer spending, declining new car sales and increasing competition resulted in a significant increase in carry-over stocks at the year-end in Russia. In 2020, Nokian Tyres net sales and operating profit in Russia are expected to decline substantially.
Nokian Tyres continues with the growth strategy in Central Europe and North America in 2020 in line with plan. Operating profit in 2020 will include costs related to the North American expansion and other investment programs to support long-term growth, as communicated in 2018.
Nokian Tyres will publish its Financial Statement Release 2019 on February 4, 2020 approximately at 2:00 p.m. Finnish time.
Nokian Tyres plc
SVP, Communications and IR
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