Nokian is starting a plan to exit Russia with a €300m impairment to be booked in Q2 22. This is a U-turn from the Q1 comments but might, at least, remove its Russia-Ukraine war proxy profile. While Nokian does not restart from a greenfield, the investments required to rebuild the lost production capacities in Europe looks like a long-term drag. Even a bullish scenario would find it hard to ever get back to pre-COVID-19’s profitability. We remain away from the stock.
28 Jun 2022
Nokian rolls out of Russia
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Nokian rolls out of Russia
Nokian is starting a plan to exit Russia with a €300m impairment to be booked in Q2 22. This is a U-turn from the Q1 comments but might, at least, remove its Russia-Ukraine war proxy profile. While Nokian does not restart from a greenfield, the investments required to rebuild the lost production capacities in Europe looks like a long-term drag. Even a bullish scenario would find it hard to ever get back to pre-COVID-19’s profitability. We remain away from the stock.