NOKIA, Finland—Nokian Tyres P.L.C. has seen a significant drop in second quarter operating profit, due to a $306 million impairment caused by the exit from Russia following the Ukraine war.
Second quarter operating profit went into red as the company recorded a loss of $207 million, down from the roughly $96 million reported last year. This, Nokian said in an Aug. 2 statement, was due to a negative $295 million booked as non-IFRS exclusions.
In June, Nokian initiated a controlled exit from Russia, where it manufactures more 17 million units per year of passenger car and light vehicle tires and generated more than $397 million in sales last year.
As part of the process, impairments and write-downs of around $307 million were recorded in the second quarter, the company said.
Sales for the second quarter was up 15.8 percent year-on-year at $492 million, while segment operating profit was down 3.7 percent at $87.8 million.
For the first six months of the year, sales grew 18.5 percent to $917.4 million, as the year "began with good demand in all markets."