Nokian results 9% ahead of consensus
Nokian’s recently reported first quarter 2012 financial numbers were 9 per cent ahead of consensus when it came to pre-tax profits (EBIT). In addition the Finnish firm’s revenue result during the same period was 5 per cent higher that average of market analysts expectations. According to analysts at Morgan Stanley, Nokian’s margin was also 100 basis points better than expected at 27.3 per cent. In fact the only cloud on the horizon was said to be net debt which was weaker than estimates perhaps because of high working capital.
As the official statement regarding Nokian’s results pointed out, this was due at least in part to the company’s continuing success in its core Russian market (company CEO Kim Gran reported market share gains here). However, improving average selling price as a result of better product mix will also have contributed to this.
Nokian’s factories are reportedly working at 100 per cent utilisation and outlook for the company’s core markets is described by Morgan Stanley as “strong with solid orders and demand.” The solitary question market refers to Central Europe, where there are said to be uncertainties relating to the regional economic situation and large stocks of winter tyres.