Nokian keeping momentum of strong 2021

NOKIA, Finland—Nokian Tyres P.L.C. reported record sales and improved earnings in fiscal 2021, and management expects the momentum to continue, albeit with a pinch of caution.

Operating income for the year ended Dec. 31 more than doubled to $310 million on 30.5 percent higher sales of $2.03 billion, raising the earnings ratio six points to 15.3 percent.

Net income more than doubled to $243.7 million.

For 2022, Nokian Tyres management expects sales and earnings to continue growing, although they cautioned there are a number of uncertainties to consider, including the continued negative effects of COVID-19 on economic growth—including cost inflation and raw materials availability—and current geopolitical situations.

The firm did not issue any specific goals for fiscal 2022.

Nokian's fourth quarter results—operating income was down 26% and sales were up "only" 24 percent—could bear watching.

Nokian Tyres President and CEO Jukka Moisio said the company's positive results in 2021 – which includes a strong cash flow and stronger market position in all key areas—"builds a foundation" for Nokian to achieve its stated growth and earnings goals going forward.

Nokian experienced "sharp increases" in raw materials and logistics costs in the second half of the year, Moisio said, prompting Nokian to raise prices. He said he expects inflationary pressures to continue in 2022, "which will require systematic price increases and careful cost control going forward."

Nokian reported sales of $265 million in its Americas region last year, an improvement of 37.1% percent. As such, the Americas represents 13 percent of Nokian's global revenue.

From a business unit perspective:

• Passenger tires business rose 37.6 percent to $1.39 billion'
• Heavy tires (truck, farm, forestry, etc.) sales rose 30.5 percent to $294 million;
• Vianor (retail operations) sales rose 7.8 percent to $397 million.