NOKIA, Finland — Nokian Tyres P.L.C. has withdrawn its financial guidance for fiscal 2022 due to the "significant uncertainty" related to Russia's military invasion of Ukraine.
Nokian — which reported a doubling of operating income and 30.5% higher sales for the year ended Dec. 31 --- had published on Feb. 8 guidance for fiscal 2022, calling for segment operating profit to grow on "significantly" higher sales.
Now, considering Russia's invasion of Ukraine and the consequent global sanctions on Russia and their impact on the functionality of the Russian financial and payment system and the Russian ruble exchange rate, Nokian's board of directors opted to withdraw that guidance.
Nokian also disclosed this week that it had moved production of some of its key lines out of its plant in Russia to plants in Finland and the U.S., while securing "transport capacity from Russia with existing and new service providers."
The plant in Vsevolozhsk, near St. Petersburg, is Nokian's largest worldwide, rated at 17 million car and light truck tires annually. The firm stressed that the shift in production had begun in September, months before the invasion, as part of its growth strategy, and that the Russian factory was operating "normally," at full capacity.
In fiscal 2021, Russia and Asia accounted for roughly 20% of Nokian's global sales revenue.