Nokian Reports Strong Q3 Sales Growth
Nokian Tyres has reported a 27.9 per cent increase in third quarter net sales, having earned a total of 236 million euros during the three-month period. This gives the company a year to date net sales increase of 25.2 per cent, up from 533.9 million to 668.9 million euros. Operating profit for the quarter was 51.6 million euros, a 39.5 per cent increase on the same period last year. For the nine months of 2007 operating profit is recorded as 140.8 million euros, a sizeable 64.5 per cent rise from last year’s January to September operating profit of 85.6 million euros. Quarterly net profit was 37.4 million euros, a 36 per cent increase on the July-September 2006 profit of 27.5 million euros, and net profit for the nine-month period stands at 107.5 million euros, 81.2 per cent higher than during the same period last year.
Nokian Tyres’ president and CEO Kim Gran commented “the third quarter, in line with the earlier part of the year, was a success for Nokian Tyres. Net sales grew in all profit centres, and the operating profit improved from the previous year both during the third quarter and the period January-September. Sales grew in all key markets, particularly in Russia.
Net sales of Nokian passenger car tyres between January to September totalled 457.7 million euros, 33.0 per cent more than in the previous year. Passenger car tyre operating profit rose to 137.8 million euros, with an operating profit percentage of 30.1 per cent. Passenger car tyres sold very well in Nokian’s key markets, and especially in Russia. Sales consisted mostly of winter tyres and the company reports that pre-season sales to distributors were active. The Nokian Hakkapeliitta 5 and Nokian Hakkapeliitta SUV 5 tyres accounted for the largest sales growth, and the launch of Nokian’s Hakka summer tyre range boosted the summer tyre sales. Nokian added that the good sales mix, new products and successfully implemented price increases led to an increase in average tyre prices from the previous year.
The net sales of Nokian truck tyres in January – September were 21.3 million, up 4.8 per cent on the previous year. The unit’s product range mainly consists of winter products, the sales of which are highest in the second half of the year. Sales of new truck tyres and retreading materials improved over the previous year. A revamped truck tyre range and higher production capacity boosted sales growth.
Sales in Russia and in the CIS countries increased by 52.0 per cent over the previous year between January and December, and the company’s market share improved. Nokian’s distribution network in this region was extended by signing distribution agreements and through Vianor’s activities. The four production lines at Nokian’s facility in Russia are currently operating around the clock in three shifts, with production volume and quality levels on target.