Nokian Tyres: Financial targets aim for faster growth in Europe, North America
Hille Korhonen says the new financial targets guide the tyre maker in executive its growth strategy
The Board of Directors at Nokian Tyres has set new financial targets for 2019-2021. These targets include faster than market growth of more than five per cent CAGR, EBIT at 22 per cent and a shareholders’ dividend of more than 50 per cent of net earnings. Nokian says the
financial targets will guide the company in reaching the strategic ambitions it set in early 2018, which include increasing sales by 50 per cent in Central Europe and doubling them in North America within the next five years.
Other strategic ambitions announced earlier this year are: To become market leader in selected segments in the Nordic countries and Russia; to extend availability of Nokian winter tyres to all major winter tyre markets; to increase the EBITDA of company-owned Vianor outlets to three per cent by the end of 2019; and to increase sales within the Nokian Heavy Tyres unit by 50 per cent within four years.
“Nokian Tyres has entered the next phase of growth, where our growth focus is in North America and Central Europe,” comments Hille Korhonen, president and chief executive officer of Nokian Tyres. “In line with our updated 2018 strategy, our ambition is to double our sales in North America and grow our sales by 50 per cent in Central Europe in the next five years, as well as to maintain our market leadership in the Nordics and Russia. The new financial targets will guide us in executing this strategy.
“Nokian Tyres is a life driven company, facilitating safe driving. Our unique expertise can be felt in people’s everyday lives as the safest, highest-quality products and services. In line with Nokian Tyres’ mission, we offer comprehensive peace of mind in all conditions, in all our target markets”, adds Korhonen.
The previous financial targets for 2016–2018 were:
– Growing faster than the market with average annual sales growth of at least four to five per cent (at stable currency exchange rates)
– The “best operating profit level in the industry,” a minimum of 22 per cent.
– Shareholder dividend of at least 50 per cent of net earnings.
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