Nokian Tyres cuts 2021 dividend as European capacity ramps up
As plans to expand European production are brought forward, Nokian Tyres is scaling back its 2021 dividend (Photo: Nokian Tyres)
The war in Ukraine has brought “high uncertainty” to Nokian Tyres’ operational environment and manufacturing capacity, and as a result it is accelerating plans to invest in new production capacity in Europe. To help fund this capacity, the Board of Directors at Nokian tyres has decided to decrease the dividend payable for the 2021 financial year.
At the tyre maker’s Annual General Meeting on 28 April, the Board will propose that a dividend of 0.55 euros per share be paid from the 2021 financial year, a total of 76.1 million euros. Its previous proposal, announced on 8 February, was for a dividend of 1.32 euros per share, payable in two instalments.
The latest proposed dividend corresponds to the minority dividend set out in Chapter 13, Section 7 of the Finnish Companies Act – eight per cent of the shareholders’ equity. The dividend will be paid to shareholders listed in the company’s shareholder register on 2 May 2022, with the Board proposing payment be made on 11 May.
Nokian Tyres also states that it “continues to increase capacity at its factories in Finland and the US.”
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