Nokian Tyres increases sales, profits
Sales and profits headed in the right direction for Nokian Tyres in the second quarter and first half of 2018. The Finnish tyre maker reports a 6.4 per cent increase in net sales, to 429.1 million euros, in the six months to 30 June. Operating profit during this period rose 10.7 per cent year-on-year to 169.3 million euros and the operating margin reached 22.1 per cent (21.3 per cent in H1 2017). Profit for the period amounted to 134.1 million euros, 15.2 per cent higher than a year ago, and earnings per share rose to 0.97 euros.
Net sales for the quarter between 1 April and 30 June 2018 increased by 9.2 per cent year-on-year to 429.1 million euros. Operating profit was up 14.8 per cent to 108.0 million euros and the operating margin was 25.2 per cent (24.0 per cent in Q2 2017). Second quarter profit was, at 87.5 million euros, 23.1 per cent per cent higher, and earnings per share rose to 0.63 euros.
“We had a good first half of the year with growth in all our main markets,” said Hille Korhonen, president and chief executive officer of Nokian Tyres. “With comparable currencies, net sales increased by 12.5 per cent. Operating profit increased compared to the first half of 2017, driven by the improved performance of Passenger Car Tyres and Vianor. In Heavy Tyres, especially sales of agricultural tyres and forestry tyres performed well.
Upon announcing Nokian Tyres’ half-year financial results, Korhonen shared that in order to support the company’s growth, production capacity for passenger car tyres at its plant in Finland will increase by approximately one million tyres per annum. This will be achieved by running the factory six days a week. “With this capacity increase, more than 80 new people will be hired for passenger car tyre production.”
Korhohen also confirmed that Nokian Tyres has commenced work on its new test centre in Spain and that construction of its new factory in the USA is “proceeding as planned.” She further shared that the tyre maker joined the Science Based Targets initiative during the second quarter and in doing so has committed itself to setting climate targets based on current research. “The new climate goals will be linked to our value chain as well as the environmental impacts of our products,” she said.
Further information about Nokian Tyres’ H1 2018 financial results can be read here.