ERJ staff report (DS)
Nokia, Finland -- Nokian Tyres net sales increased by 22.6 percent in the 12 months to December 2007. The company reported sales of Euro 1025.0 million, up from €836 million a year earlier. Operating profits also rose strongly, to €234 million compared with €153 million a year earlier.
Kim Gran, President and CEO said, "â€œNokian Tyres enjoyed strong growth throughout the year, and a particularly successful period in the final quarter completed our good performance. Passenger car tyres accounted for the majority of the growth, but also all other profit centres recorded improved net sales and operating profit. Sales grew in all key markets and particularly in Russia."
The company's statement to shareholders said, "raw material purchase prices in manufacturing (EUR/kg) increased by 1.5 percent compared to the corresponding period a year earlier. Price increases and a good sales mix resulted in average prices/kg in manufacturing to rise by 8.3 percent (4.4 percent).
Gran added, "In 2007, sales in Russia and in the CIS countries amounted to EUR 340.3 million. The sales increased by 56.9 percent compared to previous year, and the market shares improved." He continued, "The four production lines of the Russian plant operate continuously in three shifts, and the plant's production volume and quality level are on target.
On 19 October 2007, Nokian Tyres announced it had signed an agreement with the Kazakhstanian multi-industrial company Ordabasy Corporation JSC to build a greenfield passenger car tyre factory in Kazakhstan. The new factory will be a joint venture company of which Nokian Tyres' share will be 10 percent with the option to increase ownership to a minimum of 50% percent. The new factory is scheduled to be on line during 2009. The total investment will be approximately EUR 160 million, financed through equity of approximately EUR 40 million and external loans. Nokian Tyres has signed a long-term technical support and management aid agreement with Ordabasy Corporation.
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Press release from Nokian