ERJ staff report (DS)
Nokia, Finland -- Nokian Tyres group's net sales increased by 19.7 percent to EUR 1,166.0 million (EUR 974.3 million in 1-9/2011). Operating profit grew to EUR 303.3 million (EUR 261.0 million). Earnings per share increased to EUR 1.85 (EUR 1.66).
The company said, â€œNokian Tyres has during 2012 further improved its position by winning market shares in all markets in winter tyres, especially in Russia and Central Europe. The company's full year sales in the Nordic countries are expected to be on previous year's level and in Russia sales will improve clearly compared to 2011. â€œ
Kim Gran, President and CEO, said, "Nokian Tyres performed well in a challenging environment even though the third quarter results were below our plans. Our sales in Russia continued to grow more than the market also in Q3 and the Nordic countries sales came in as planned. Our car tyre sales in total improved, but a clearly weaker market and distributor carry-over winter tyre inventories in Central Europe hurt our mix and ASP in Q3, which resulted in lower margins. Cumulatively our Operating profit is well ahead of last year. In the review period improved productivity and successful cost control, as well as higher ASP, were the main factors for good profits.
He continued, â€œA continuous expansion of our distribution network is a cornerstone for our growth. It is encouraging that in a tougher market during the review period we managed to open 76 new Vianor stores, now totalling 986 stores in 24 countries. We will reach our target of exceeding 1,000 stores by the end of 2012.â€
Gran added, â€œIncreasing production in our Russian factory boosted output (tons) by 16 percent versus 1-9/2011. Due to a weaker market and lower visibility we decided to cut production volumes during H2 in Finland in order to secure productivity and the ramp up of capacities in Russia.â€
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Press release from Nokian