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The
company, which used to make 80% of its passenger car tyres in
neighbouring Russia, turned from basking in record earnings to
survival mode in February when Moscow launched what it calls a
"special operation" in Ukraine.
"However, tire demand has remained good and Nokian Tyres has
succeeded in implementing price increases to mitigate cost
inflation. Therefore, the company raises its net sales guidance
for 2022," it said in a statement.
The company now expects 2022 net sales to decrease or to be at
the previous year's level, compared to previous guidance of
sales to decrease significantly from 2021.
Its operating profit is still expected to decrease significantly
this year, it added.
"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. Significant uncertainties remain
in the outlook for 2022," it added, referring to Western
sanctions against Moscow.
Its shares were up 9% at 1120 GMT.
Nokian Tyres has previously warned it would not be able to
replace reduced capacity from its Russian production facility
this year.
(Reporting by Stine Jacobsen; Editing by Mark Potter)
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