Q2 2024 Nokian Tyres plc Earnings Call Transcript
Key Points
- Nokian Tyres PLC (NKRKF) reported a net sales increase of 11.2% with comparable currencies in Q2 2024.
- The company's segment EBITDA improved to EUR 46.8 million from EUR 41.3 million in 2023.
- The new factory in Romania is on schedule and within budget, with commercial production expected to start in early 2025.
- The US factory in Dayton has completed its investment phase and is now fully operational, including a new finished goods warehouse.
- Nokian Tyres PLC (NKRKF) has made significant progress in using renewable materials, including a new lignin-based material that could replace carbon black in tires.
- The company faced a EUR 20 million impact on EBITDA due to political strikes in Finland during the first half of 2024.
- Raw material costs are expected to increase in the second half of the year, potentially impacting profitability.
- The heavy tires segment experienced a 10% decrease in sales due to weak market demand, particularly in the OE sector.
- Operating profit for the Vianor business decreased by EUR 2 million, with inflation posing challenges to pricing.
- The company is still awaiting the European Commission's decision on government subsidies for the Romanian plant, adding uncertainty to future financial planning.
Good afternoon from Helsinki, and welcome to Nokian Tyres Q2 '24 results conference call. My name is Päivi Antola; I'm heading the Investor Relations in Nokian Tyres. And together in this call, I have Jukka Moisio, the President and CEO of the Company; and Niko Haavisto, the CFO.
As usual, in this call, we will go through the results and talk about some other topicals as well. And these will be presented by Jukka and Niko, followed by a Q&A.
So Jukka, the floor is yours.
Thank you, Päivi. Welcome on my behalf. And we will talk about the results and some of the recent highlights that have happened in the company. But we will go through the presentation -- I'll go through a presentation called improved tire availability driving sales growth in a challenging environment dated on July 19. And I move to page
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
