Nokian, Finland – Nokian Tyres plc has lowered its previously issued business guidance for full-year 2019, due to weakened car and tire markets.
The Finnish tire maker expects markets to “remain soft” is continuing to adjust capacity in its factories accordingly, said a 22 Oct company statement.
In June, Nokian forecast net sales to come in slightly higher and operating profit to be lower this year compared to 2018.
Net sales are now expected to be approximately at the level of 2018 and operating profit margin to be approximately at the level of 20%.
Operating profit, noted Nokian, will include “significant additional” operating costs to support growth targets in Russia, central Europe, and North America.
Nokian went on to note its opening, in October, of a US plant in Dayton, Tennessee, with commercial tire production to start in January 2020.
Construction of the new testing centre in Spain and project to increase ‘heavy tires’ capacity “are proceeding according to plan,” the company also pointed out.