'Good' demand raises Nokian's sales outlook, but not profits

NOKIA, Finland—Nokian Tyres P.L.C. has raised sales guidance for 2022 despite continued "significant uncertainty" in operations, particularly in Russia.

Net revenue for the year is expected to "decrease or to be at previous year's level," Nokian said in a June 17 statement.

In its earlier guidance given on April 27, the Finnish tire maker said it expected sales and operating profit to "decrease significantly compared to 2021."

Nokian linked the improved sales outlook to "good" tire demand and its success in implementing price increases to mitigate cost inflation.

Despite the improvement in revenue forecast, Nokian's latest update still estimates operating profit to remain "significantly lower" than the year before.

This, it said, is due to the war in Ukraine and the subsequent sanctions on Russia.

"In the second half of the year, Nokian Tyres' tire supply will be severely limited by the sanctions, having a negative impact on segments operating profit," it said.