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Nokian Tyres scales down dividend proposal – Metro US

Nokian Tyres scales down dividend proposal

FILE PHOTO: Nokian tyres are stored at a tyre centre
FILE PHOTO: Nokian tyres are stored at a tyre centre and shop in Moscow

(Reuters) – Nokian Tyres has cut its dividend proposal for 2021, the Finnish tyre maker said on Wednesday, citing uncertainty caused by the Russia-Ukraine conflict.

The company, which produces about 80% of its output in Russia, proposed a dividend of 0.55 euros per share, down from the 1.32 euros flagged previously.

The conflict in Ukraine has caused high uncertainty related to Nokian’s operational environment and manufacturing capacity, the company said.

Nokian also plans to “expedite” new production capacity in Europe, it said without elaborating.

Inderes analyst Joonas Koerkiakoski said the decision to reduce the proposed dividend was to be expected.

After Russia sent its troops into Ukraine, Nokian shifted part of its production from Russia to Finland and the United States ahead of possible sanctions.

The company also scrapped its full-year guidance, citing a slump in the value of the Russian rouble and disruptions to the Russian payment system.

(Reporting by Boleslaw Lasocki; Editing by Elaine Hardcastle and David Goodman)

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