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Nokian Tyres scales down dividend proposal -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO – Nokian Tyres were stored in a Moscow tyre shop and centre on August 8, 2014. REUTERS/Maxim Shemetov/File Photo

(Reuters) – Nokian Tyres cut its 2021 dividend proposal, the Finnish tyre manufacturer said Wednesday. The reason was uncertainty due to the Russia-Ukraine war.

This company produces around 80% of its Russian output and proposed that it pay 0.55 euro per share instead of 1.32 euros.

According to Nokian, high levels of uncertainty have resulted in the destruction of manufacturing capabilities and operational environments.

Nokian said it also planned to “expedite new production capacity” in Europe.

Joonas Koerkiakoski, an analyst at Inderes, said that the reduction of the dividend proposal was normal.

Nokian moved part of its production from Russia after Russia deployed troops to Ukraine. This was in preparation for any sanctions.

In addition, the company canceled its full year guidance due to a decline in the Russian ruble and disruptions to Russian payments.

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