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Finland’s Nokian Tyres on Tuesday posted a shock loss for the second-quarter as its exit from Russia weighed closely on earnings and the tyre maker stated it expects profitability to weaken considerably in comparison with 2021.
“Discontinued provide of tires from Russia could have an antagonistic impression on gross sales particularly in Central Europe within the second half of 2022,” Chief Government Jukka Moisio stated in a press release.
Moscow’s assault on Ukraine and sanctions put in place by the European Union has compelled Nokian to halt manufacturing at its largest manufacturing plant close to Russia’s St Petersburg the place the corporate used to make 80% of its passenger automotive tyres.
April-June working consequence swung to a lack of 203 million euros ($207.6 million) from a year-ago revenue of 81.8 million, lacking the 33.1 million euro revenue imply estimate in a company-provided ballot.
Impairments and write-downs amounted to 300.7 million euros within the quarter, Nokian stated.
The corporate’s share worth fell by greater than 11% after outcomes had been printed at 1100 GMT, lagging a 1.5% fall in Helsinki’s benchmark index.
