Nokian Tyres’ Net Sales Up by 19.8 per cent
Publishing its third quarter results Nokian Tyres announced it achieved pre-tax profits 35.8 million more than doubling the previous year’s total of 16.9 million euros. Nokian’s results were well-received by analysts who applauded the company’s consensus beating results. According to Deutsche Bank, Nokian’s EBIT was 6 per cent higher than analysts’ collective projections and 19 per cent above Deutsche’s estimate.
According to the analysts, Nokian’s figures show: “The competitive pressures from last year were temporary, and Nokian has returned to high margins thanks to new tyres, exposure to the Russian market both in terms of lower production costs and demand for higher margin products. Furthermore, given the early start of winter, the selling season of winter tyres has started off well and Nokian commented that the order book is healthy.”
Summarising the market situation, Nokian described the European market as currently “challenging”, explaining that, in the Nordic countries, car summer and winter tyre sales volumes were down from the previous year. In contrast markets in Eastern Europe and Russia, as well as Germany bucked the trend. Sales into the German market were said to have improved following new winter tyre regulation. At the same time the manufacture of forestry and industrial machinery is said to have continued at a brisk pace.
Kim Gran, president and CEO, commented: ”The positive trend continued at Nokian Tyres accelerating further in July–September: sales increased, profits improved and market shares of car winter and summer tyres grew significantly. Strong growth continued at Heavy Tyres, and both new and retreaded truck tyres sold better than the year before. Vianor’s sales and profit were below targets.”