Nokian CEO Korhonen stepping down; industry outsider Moisio to succeed her

NOKIA, Finland — Hille Korhonen, president and CEO of Nokian Tyres P.L.C. since 2017, is stepping down and the company has reached outside its corporate ranks for her successor, Jukka Moisio, former president and CEO of global packaging company Huhtamäki Oyj.

Mr. Moisio's appointment is effective May 27.

During her three years as Nokian's top executive, Ms. Korhonen presided over an ambitious expansion program that has yielded a factory in the U.S. and a tire proving grounds in Spain, which collectively represent nearly $400 million in investments.

Ms. Korhonen, 59, did not comment publicly on her reasons for stepping down.

Mr. Moisio, 59, is described as having a "strong background" in leading international companies. He was Huhtamaki's top executive for 11 years (through April 2019) and prior to that was president and CEO of Ahlstrom Oyi for four years.

Nokian Chairman Jukka Hienonen said Mr. Moisio "has a proven record in successfully leading stock listed companies and company turnarounds, delivering strong financial performance and shareholder returns" and has the "experience and capabilities to lead the company to its next phase of development."

He also has a "deep understanding" of the markets in Central Europe and North America, Mr. Hienonen said, which are key growth markets for Nokian.

Mr. Moisio called Nokian a "great company with fantastic products, a valued brand and leading position in its home markets and a lot of opportunities for development. I look forward to working with the Nokian Tyres team, and creating future success together with our existing and new customers."

Ms. Korhonen was named president and CEO in March 2017, joining Nokian at that time to fill a post vacated in late 2016 by Ari Lehtoranta. She had been a Nokian board member at that time for 11 years.

Prior to joining Nokian, she was CEO of beverages producer Alko Oy.

"Hille Korhonen has had an important role in building Nokian Tyres, first as a member of the board and during the past three years as president and CEO," Mr. Hienonen said.

"These past years have been characterized by an intensive investment phase, during which the company has built a factory in the US, as part of the target to double Nokian Tyres sales in North America."

Mr. Moisio joins Nokian in the midst of the company's efforts to deal with the economic impact of the COVID-19 pandemic.

For the quarter ended March 31, Nokian reported double-digit declines in both sales and profits, due mainly to Covid-19 pandemic and lower volumes in Russia.

Operating profit fell 71% to $1.8.1 million on 16.5% lower sales of $329 million, Nokian announced May 5.

The Finnish tire maker linked lower sales to measures taken to reduce its high carry-over stocks in Russia, low demand caused by Covid-19 and a mild winter in all main markets.

Earnings were hit by a $22 million negative impact from lower volumes in Russia, and an $11 million effect from Covid-19 and low factory utilization rates.