Joonas KorkiakoskiAn analyst at Inderes wrote on Friday that Nokian Tires said in a call that it expects supply to exceed demand as a result of the withdrawal of competing tire manufacturers such as Bridgestone, Continental and Michelin.
“The company didn’t really say it would benefit from the situation, but it was an analyst observation based purely on market economy mechanisms,” he said. underlined To YLE on Monday.
Korkiakoski spoke to the broadcaster about the interpretation given in the media and in social media comments that the company had estimated that it could increase its market share and thus benefit from the coercion of companies from Russia caused by the war.
In its analysis, OP Financial Group wrote that the conference call “left the impression” that the company had no plans or major shareholders to require it to withdraw from Russia. Inderes estimated on Friday that only a small percentage of dealers would refuse to sell Russian-made tires, but added that the war – especially if it drags on – could affect consumers and cause significant reputational damage to Nokian Tires.
The 13 percent collapse taken by the stock yesterday can be interpreted as an indication of the latter.
The situation is difficult for Nokian Tires, which manufactured more than 80 percent of its tires in Russia last year. Korkiakoski told YLE that withdrawing from the country could reduce the company’s net sales by approximately 50 percent – or EUR 750–850 million – and operating profit by 66 percent – or EUR 200 million.
Nokian Tires has announced that it will accelerate the relocation of certain production operations from Russia to Finland and the United States.
Jukka MoisioOn Monday, the CEO of Nokian Tires emphasized to Helsingin Sanomat that the company is by no means seeking to benefit from its growing market share in Russia.
“Nokian Tires condemns the war in every way possible and we are on the side of peace. Proportionate to the size of the company, we have a huge factory in St. Petersburg, and we naturally need to think carefully about what is being done to it so that it doesn’t end up in the wrong hands, he says. said newspaper.
Reports that the company had said it would benefit from the situation were also knocked out Teemu Kangas-KärkiCFO of Nokian Tires.
“We have not said that we would benefit from the increase in our market share, nor have we said that we would benefit at the expense of war. That is a completely absurd claim, ”he told Helsingin Sanomat.
Aleksi Teivainen – HT
Source: The Nordic Page