Nokian plunges as lower tyre demand prompts outlook cut

Nokian Renkaat Oyj

25/10/2023 08:24

** Shares in Nokian Tyres  TYRES.HE  fall 15% after the
Finnish tyre maker late on Tuesday lowered its guidance for 2023
sales, citing falling demand
    ** Nokian now expects segments net sales in 2023 in the
range of 1.15 billion euros–1.20 billion euros ($1.22
billion-$1.27 billion) against 1.30 billion-1.50 billion seen
previously 
    ** It warns of "demanding" market environment, low consumer
confidence, which hit sales more than earlier expected
    ** J.P.Morgan notes "aggressive" destocking on the European
tyre market in the last few months, as well as negative currency
effect 
    ** "We expect consensus numbers to be cut by ~25% for 2023",
the broker says
    ** Nokian shares fall to the bottom of the Helsinki blue
chip index  .OMXH25  and are down 35% year to date
    


($1 = 0.9447 euros)

 (Reporting by)
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