Although Nokian Tyres’ net sales decreased 1.9 per cent year-on-year to €275.8 million in the first quarter of 2016, the Finnish company increased its operating profit by 4.6 per cent to €50.5 per cent and nudged its operating margin up from 17.2 per cent to 18.3 per cent. Net profit for the January to March quarter amounted to €39.9 million, 70.5 per cent lower than the result recorded a year earlier; the reason for this was the return of €100.3 million worth of taxes and interest for 2007 to 2010 to the company’s books in the first quarter of 2015. Excluding this one-off event, profit rose 13.8 per cent year-on-year. Earnings per share amounted to €0.30 during the quarter.
“Our market performance has started in line with our expectations,” stated Ari Lehtoranta, president and CEO of Nokian tyres. “Challenges in Russia continue with declining new car sales and tyre market. Winter tyre deliveries both for North America and Russia have been lower than last year because of the higher customer inventory levels. We have been able to increase summer tyre sales in all our markets and winter tyre sales especially to Central Europe. We have gained market share in most of our markets keeping our strong position in the Nordics.”
The tyre maker anticipates that the current quarter will be “weaker” than Q2 2015 due to sales shifting nearer to the season and its customers’ high winter tyre stock levels in Russia and North America.
Category: Company News