NOKIA, Finland—With many key investments coming to fruition and a better understanding of the COVID-19 impacts, Nokian Tyres P.L.C. has a new focus: cashflow, promotion and increasing productivity.
"In the past, we've had a number of important initiatives. Now, as these programs are coming to an end, we have to look internally with promotional programs, targeting new segments," President and CEO Jukka Moisi said in Sept. 8 conference call that marked 100th day as CEO.
"Long-term strategy, we are comfortable with where we are at, but that may have to be adjusted as the markets stabilize. … We clearly see that COVID is a temporary setback. If recovery continues, we are in a good position."
Moisio, former president and CEO of global packaging company Huhtamaeki Oyj, was appointed May 27 to replace Hille Korhonen.
He said the company cut costs significantly and temporarily idled production earlier in the year because of the pandemic. The moves, he said, helped with short-term cashflow, though the company was able to keep its inventory levels "well managed."
The Finnish tire maker reported a net loss of $24.7 million in the first half of the year, compared with a net profit of nearly $300 million the year before.
"We have a strong manufacturing know-how," he said. "The brand is well known in markets and segment where we have historical good position.
"And we have a strong team. The (COVID-19) impact could have been really significant, but our team reacted well."