Russia gives Nokian a “positive surprise” in Q3

Nokia, Finland – Nokian’s results have shown a promising turn, with third-quarter sales and profits up by 2% and 2.4% respectively.

In the three months to 30 Sept, net sales increased by 2.0% to €317.2 million while operating profit rose by 2.4% to €74.1 million compared to Q3 2015.

In the nine months to September, however, sales were down by 0.8% to €930.5 million compared to the similar period in 2015.

Currency exchange rate changes affected net sales negatively by €34.0 million, according to Nokian.

Operating profit increased by 0.4% to €202.0 million in the nine months.

The company expects that, in 2016, with current exchange rates, net sales and operating profit would remain at the same level compared to 2015.

While markets remained stable in the third quarter, “the summer tire season in Russia was a positive surprise,” said Nokian president and CEO Ari Lehtoranta.

This, he said, was one of the “first weak signs of the economic situation stabilising” in Russia.

“Russia and CIS sales even grew slightly, but the market remains at a low level and there is no rapid growth yet in sight,” he added.

Production volumes, said Lehtoranta, were higher than last year with productivity developing positively.

While passenger car tires were up slightly from last year, weak markets posed a challenge to the ‘heavy tyres’ business.

“Only the forest segment continues to perform well,” said the Nokian CEO.

However, he added, Nokian has decided to continue making the necessary investments for the future and, therefore, the operating profit has declined slightly.