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Finland’s Nokian Tires raises sales outlook despite uncertainty in Russia | Investment News

COPENHAGEN (Reuters) – Finland’s Nokian Tires raised its sales forecast on Friday despite an uncertain operating environment linked to Russia, home to its largest production plant.

The company, which made 80% of its passenger car tires in neighboring Russia, went from record profit to survival mode in February when Moscow launched what it calls a ‘special operation’ in Ukraine. .

“However, tire demand remained strong and Nokian Tires managed to implement price increases to mitigate cost inflation. As a result, the company is raising its net sales guidance for 2022,” it said. he said in a statement.

The company now expects 2022 net sales to decline or be at the prior year’s level, compared to previous forecasts of sales falling significantly from 2021.

Its operating profit is expected to decline significantly again this year, he added.

“In the second half of the year, Nokian Tires’ tire supply will be severely restricted by the sanctions, which will have a negative impact on the operating profit of the segments. Significant uncertainties remain in the outlook for 2022,” he said. he added, referring to Western sanctions against Moscow. .

Its shares were up 9% at 11:20 GMT.

Nokian Tires has previously warned that it will not be able to replace reduced capacity at its Russian production plant this year.

(Reporting by Stine Jacobsen; Editing by Mark Potter)

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