Nokian Reports Strong First Quarter
Finnish tyre manufacturer Nokian Tyres Oyj reported profits of 9.4 million euros, compared with 7.1 million euros last year. At the same time net sales rose 129.4 million euros from 112.9 million. Nokian Tyres said its main target for 2005 remains to outperform the results of the previous year in terms of net sales and profit.
The company also reported that it is experiencing increasingly better opportunities to increase sales in its core areas, such as the Nordic countries, Russia, the US and Eastern Europe, where the company expects the demand for passenger car winter tyres and high-performance summer tyres to continue to grow during the latter part of the year.
Nokian Tyres estimates its raw material costs in the first half to be some 8 per cent higher than those of the corresponding period last year.
Following to the unexpectedly strong first quarter, Deutsche Bank analysts upgraded their rating from hold to ‘Hold’ to ‘Buy.’ The analysts also raised their 2005-2007 earnings per share estimates by 4, 17 and 33 per cent respectively. Based on their new forecasts the analysts have set target prices of 16 euros from 12 euros. Shares in the Finnish company went up 4.92 per cent this week in response to the report.