Nokian Net Sales Down, But 3Q Ahead of Predictions
Nokian Tyres’ net sales for the first nine months of 2009 totalled 550.8 million euros (down 32.2 per cent on 813.2 million euros in January to September 2008). Meanwhile the company’s operating result amounted to 61.2 million euros in the period. According to the company, sales and operating result improved clearly in the third quarter. July to September operating profit fell 39 per cent compared with 43.7 million euros (£42.492 million; $64.6 million). Reuters reported that this figure beat all of the forecasts in its poll. During the same period, sales fell 28 per cent to 204 million, in line with expectations.
Sales and operating margin is said to have improved, compared to previous quarters, due to pre-season deliveries of winter tyres, restocking of heavy tyres by OE customers, production restructuring and reduced raw material cost.
Kim Gran, Nokian president and CEO, was upbeat about the future: “Uncertainty in the market continues but the strong headwind has changed to a more stable breeze. The underlying drivers for the economy on Nokian Tyres’ core markets seem to have stabilized and tyre demand shows some signs of a slow recovery. Third quarter sales and operating profit of car and also heavy tyres were satisfactory when reviewing them against the market situation. Seasonal demand and preseason sales were in line with plans and helped to improve productivity.
“The launch of our new winter tyre, Hakkapeliitta 7, has been a great success and has helped to maintain healthy prices and strengthen our market leader position on our core markets. Our market shares improved on all markets except in Russia where we maintained our market leader position.”