ERJ staff report (DS)
Helsinki, Finland - Nokian Tyres group's net sales increased by 37.7 percent to EUR 1,456.8 million (EUR 1,058.1 million in 2010). Operating profit grew to EUR 380.1 million (EUR 222.2 million) and Profit for the period amounted to EUR 308.9 million (EUR 169.7 million).
Kim Gran, President and CEO said, â€œThe year 2011 was a success story for Nokian Tyres as sales, margin and production output all improved. Our growth strategy paid off generously in conditions of strong demand.â€
The company said it had to switch the mix at the start of the Winter season, due to low snowfall in much of the region.
Production output (tons) grew by 47 percent year-over-year both factories improving output and productivity. Weekly output was increased from 250 to 360 thousand tyres/week during the year by the start of new production lines in Russia. The ramp-up continues by building a new state-of-the-art factory in Russia with start of production during summer 2012.
The replacement market sales volume for car tyres in 2011 increased in the Nordic countries by an estimated 2 percent and in Europe by 3 percent year-over-year with summer tyre sales declining and winter tyre deliveries increasing by 15 percent. Tyre industry deliveries to distributors increased by over 30 percent in Russia in 2011, trailing the improving economy, lower stocks of distributors and strong consumer confidence
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Results statement from Nokian