Difficulties in Russia drag down Nokian Tyres’ Q1 2015 net sales

12th May 2015 | 1 Comment
 
Difficulties in Russia drag down Nokian Tyres’ Q1 2015 net sales
You know a situation is difficult when a company prints the word ‘challenging’ on the cover of its own financial report…

Although it enjoyed growth in Western markets during the first quarter of 2015, Nokian Tyres reports that its business in Russia “remains challenging”. The tyre maker’s 9.9 per cent year-on-year decrease in net sales to €281.3 million was driven by a 43.9 per cent decline in gross sales in Russia and the CIS. Operating profit dropped 29.4 per cent to €48.3 million and profit margin contracted from 21.9 per cent to 17.2 per cent. A windfall meant good news on the bottom line, however; the annulment of a previous tax ruling meant the company was able to return taxes and interest of €100.3 million to its financial result. Therefore profit for the three-month period rose 249.3 per cent from €38.7 million in Q1 2014 to €135.3 million this year.

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