NOKIA, Finland—The ongoing war in Ukraine and its impact on business has pushed Nokian Tyres P.L.C. to reduce the amount of the fiscal 2021 dividend it will pay shareholders to less than half of what it originally had proposed.
The Finnish tire maker said the fiscal 2021 dividend proposal it plans to present at its annual meeting on April 28 is a one-time fee of 55 Euro cents per share, for a total of nearly $85 million, based on the number of outstanding shares of Nokian Tyres at the time of the proposal.
On Feb. 8 of this year, Nokian's board of directors proposed that amount to be 1.32 Euro per share, payable in two installments.
According to the financial statements for the fiscal year 2021, the distributable funds totaled $828 million.
The proposed dividend corresponds to the minority dividend pursuant to Chapter 13, Section 7 of the Finnish Companies Act, or 8 percent of shareholders' equity, Nokian said.