(Reuters) -Finland's Nokian Tyres on Tuesday reported quarterly earnings slightly below market expectations and said it was planning to cut some jobs in its domestic market and elsewhere as it seeks
Nokian Tyres Announces Job Cuts Following Q3 Profit Shortfall
Nokian Tyres Job Cuts and Financial Performance
(Reuters) -Finland's Nokian Tyres on Tuesday reported quarterly earnings slightly below market expectations and said it was planning to cut some jobs in its domestic market and elsewhere as it seeks to improve efficiency of its operations.
Impact on Employees
The tyre maker, which employs around 4,400 people worldwide, booked a comparable operating profit of 32.4 million euros ($38 million) for the third quarter, while analysts polled by Vara had expected 34.5 million on average.
Market Reaction
Nokian said it would start negotiations with unions over staff reductions which may lead to 80 permanent cuts and temporary furloughs for around 650 employees. Around 55 of the permanent cuts are expected in Finland.
Industry Context
The company's shares dipped briefly following the earnings publication, but regained ground to trade 3% higher by 1150 GMT after it announced the job reduction plans.
The auto industry is grappling with shrinking sales growth as U.S. President Donald Trump's tariffs feed consumer uncertainty, while putting pressure on supply and logistics chains.
However, Nokian's quarterly sales grew 9.7% to 344.1 million euros, beating a market forecast of 339.5 million euros. Notably, it said its sales outperformed the broader market in the Americas region, with a 19% rise to 78.4 million euros.
This contrasted with French rival Michelin, which earlier in October warned of a knock-on impact from weaker car sales in the U.S. amid increasing car prices and growing cautiousness among customers.
Having moved out of Russia, where it had produced around 80% of its passenger car tyres until 2022, Nokian opened its first U.S. factory in Dayton, Tennessee.
But while the local production facility helped it avoid a direct impact from U.S. import tariffs, the company has also warned of increasing customer uncertainty.
(Reporting by Boleslaw Lasocki in Gdansk, editing by Milla Nissi-Prussak)
