Nokian reports higher sales, profits despite currency impact

Nokia, Finland – Nokian Tyres plc has increased year-on-year sales by 3.7% to €1.12 billion for the first nine months of the year, despite a decline in the third-quarter revenue.

Operating profit rose 5.1% to €255.2 million for the nine-month period, compared to €242.8 million the year before, the company said in a recent results announcement.

Year-on-year, third quarter sales fell 1.7% to €356.9 million, while operating profit came in 4.3% lower at €85.9 million, added the 31 Oct statement.

Currency exchange rates affected net sales negatively by €10.5 million for the three-month period, according to Nokian.

Additionally, net sales in the July−September period were hit by high inventory levels of summer tires in Russia and lower new car sales in Sweden and Norway.

For the nine-month period to end of September, however, Nokian attributed growth to higher sales volumes and price/mix with comparable currencies.

“Operating profit increased slightly compared to the first nine months of 2017, despite a significant negative currency impact,” said Hille Korhonen, president and CEO.

Additionally, Nokian increased utilisation rates year-over-year during the first nine months of 2018, while improving production output (pcs) by 8%.

In June 2018, the company announced that it was further increasing its production capacity for passenger car tires in Finland by approximately 1 million tires by adding an extra working day before the beginning of 2019.

Nokian Tyres’ passenger car tire production in Finland is currently running five days a week.

The Finnish tire maker also increased production capacity in Russia from 15.5 million to 17 million units per year last year.

Russian production currently accounts for roughly 85% of the company’s total capacity.