NOKIA, Finland – Nokian Tires PLC reported record sales and improved earnings in fiscal 2021 and management expects the momentum to continue, albeit with a pinch of caution.
Operating profit for the year ended Dec. 31 more than doubled to $310 million on sales up 30.5% to $2.03 billion, boosting the earnings ratio by six points to 15.3%.
Net income more than doubled to $243.7 million.
For 2022, Nokian Tires management expects sales and profits to continue to grow, although it warned there are a number of uncertainties to consider, including lingering negative effects of COVID-19 on economic growth – including cost inflation and the availability of raw materials – and the current geopolitical situation. situations.
The company has not issued any specific targets for the 2022 financial year.
Nokian’s fourth quarter results – operating profit fell 26% and sales grew “only” 24% – are worth watching.
Nokian Tires President and CEO Jukka Moisio said the company’s positive results in 2021 – which include strong cash flow and a stronger market position in all key areas —” provide a foundation” for Nokian to achieve its growth and profit objectives in the future.
Nokian saw “sharp increases” in raw material and logistics costs in the second half, 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 recorded sales of $265 million in its Americas region last year, an improvement of 37.1%. Thus, the Americas represent 13% of Nokian’s worldwide turnover.
From a business unit perspective:
- Passenger tire business grew 37.6% to $1.39 billion’
- Sales of heavy tires (truck, agricultural, forestry, etc.) increased by 30.5% to reach $294 million;
- Vianor’s sales (retail activities) increased by 7.8% to reach $397 million.