Nokian Tyres shares slump as Q4 results, dividend disappoint

Nokian Renkaat Oyj

04/02/2025 12:53

(Updates share move in 1st bullet point, milestone in 8th
bullet point; adds dividend in 4th, analyst comment in 5-6th
bullet points)
  ** Shares in Nokian Tyres  TYRES.HE  slide 15.8% after the
Finnish tyre maker delivered Q4 results below consensus and cut
dividend  
   ** Its Q4 EBIT more than halved year-on-year to 15.4 million
euros ($15.90 million) from a year ago, missing the 49.3 million
euros expected by analysts in a Vara consensus
   ** It posted Q4 sales rising 12.7% to 415.0 million euros,
but below 418.6 million euros seen by analysts
   ** The group reduced dividend proposal to 0.25 euro per
share, while analyst expected a 0.53 euro payout
       ** J.P.Morgan says the Q4 miss, greater-than-expected
cash burn and dividend cut reinforce its "underweight" rating on
the stock
  
       ** "A closer examination reveals that the core passenger
car business underperformed," the broker says
  
       ** Nokian Tyres said that net sales in the segment were
soft in North America, adding that recent trade tariffs
announcements are causing uncertainty 
   ** The stock is on track for its worst day since March 2022



($1 = 0.9685 euros)

 (Reporting by Marta Frąckowiak)
 ((marta.frackowiak@thomsonreuters.com))