NOKIA Finland — Nokian Tyres P.L.C. has lowered its financial outlook for 2023, on the back of a weak set of preliminary results for the third quarter.
The Finnish tire maker now expects its segments operating profit ratio to be in the 5.5% to 6% range, down from the previous forecast of 6% to 8%, with full-year sales to fall 12% to 20% short of earlier estimates at roughly $1.25 billion to $1.3 billion.
Based on preliminary, unaudited third quarter results, Nokian's sales for the three months to end of September fell 38% year-on-year to $299 million.
"Segments operating profit" fell by over 50% to $21.2 million, Nokian said.
During the third quarter, Nokian noted the car and tire market environment "continued to be demanding," with inventories in the distribution sector at "a high level."
Sales were, therefore, negatively affected by "customers' focus on inventory management" and "low consumer confidence." In addition, currencies also impacted overall sales, Nokian added.
"Despite these short-term uncertainties, margins have remained on a good level," Nokian President and CEO Jukka Moisio said.