Nine-Month Figures From Nokian
Finnish manufacturer Nokian has released its financial figures for the first nine months of the year. Net sales rose by 29.9% to stand at 258.
6 million Euro. The comparable figure for the same period last year was 199.0 m.
This figure includes a number of acquisitions (Rengasmestarit-Kumi-Heleneius, ISKO) ; taking these out of the equation gives a turnover of 219.9 m Euro, which is 10.5% higher than last year’s figure.
Operating profit was reduced to 11.9 m Euro (18.4 m).
The o.p. from manufacturing was almost the same as for last year; 23.
4 m Euro (23.9 m), but the tyre chain operation made a loss of -9.4 m Euro (-3.
8 m). Profit before tax was 4.7 m Euro (13.
9 m) and net profit was 2.7 m Euro (9.9 m).
Below are details of the individual product groups. Passenger Car Tyres: Sales increased by 11.2% over the same period last year to reach 124.
1 million Euro. Sales in Nordic countries were lower than planned, particularly of winter tyres, while sales in Eastern Europe and the alpine region increased. Demand for high speed tyres increased in virtually all markets.
Heavy Tyres: At 40.8 m Euro, sales of these products were up 2.9%.
There was low demand in Norway and supply problems with off-take manufacturing affected sales. Bicycle Tyres: Sales were down 9.9% at 4.
8 m Euro (5.3 m) Retreading Materials: Sales were more or less static at 7.4 million Euro (7.
5). there was reduced demand for passenger car tyre retreading materials in Finland and Sweden, but this was countered by good demand in most markets for truck tyre retreading materials. Tyre Chain: Net sales of the tyre chain were 107.
9 m Euro (43.0 m). This 152% increase is due to acquisitions made during the year.
With these factored out, the turnover is 48.9 m Euros. Despite the fact that winter tyres became compulsory in Sweden last year, the demand for these products was low.
Nokian has found that there are now two distinct buying seasons in Sweden – before the winter tyre law, motorists were buying summer tyres in the autumn as well, but the purchase of these is now being held over to the spring. Nokian completed the task of uniting its Nordic retail outlets under a common corporate identity, and the outlets have been brought together under the name Vianor. Outlook The figures have been hit by the rising prices of raw materials and these are expected to continue to increase.
The Nokian group has grown considerably in the past year or so and efforts are being made to streamline the structure and reduce fixed costs. Measures to increase sales and production volumes are also being introduced. At the end of September, Nokian signed an off-take agreement with Michelin, whereby the French manufacturer will make Nokian brand agricultural, industrial and truck tyres, which should provide a boost in sales for the expanded product range.
More recently, Nokian also unveiled an in-tyre pressure sensor that can communicate with a driver’s mobile phone, thus eliminating the need for a separate, in-cab monitor. The company has great hopes for this technology in the future. For the year as a whole, Nokian expects sales volumes to be 20% up on last year, but profits will be slightly less than in 1999.