Nokian Tyres down 11% on wider EBIT loss

Nokian Renkaat Oyj

06/05/2025 12:25

** Shares in Nokian Tyres TYRES.HE drop 11% after the Finnish tyre maker posted wider-than-expected operating loss

** Its first-quarter, comparable operating (EBIT) loss was EUR 18.5 million ($20.94 million), above the EUR 4.6 million loss expected in Vara consensus

** Handelsbanken analyst Timo Heinonen sees "high uncertainty relating to profitability," adding the weak Q1 does not make him less worried

** Nokian Tyres says in the report the year-on-year drop in profitability is due to higher raw material and SG&A costs

** "This sounds bad," says Heinonen, noting co gained from higher raw material prices in the past, thanks to its strong pricing power in the Nordics

** The analyst is unsure if TYRES' market position and brand value can be strong in Central European or North American markets, despite its strength in the Nordics

** Heinonen adds "estimates are a moving target and a lot depends on how the coming peak season will play out"

** The stock was down 15.8% YTD

($1 = 0.8835 euros)

(Reporting by Vera Dvorakova)

((vera.dvorakova@thomsonreuters.com))