Central European market slows growth at Nokian

Fourth quarter net sales fell 3.4% year-on-year to €473.6 million, while operating profit dipped 4.4% to €117.2 million, added the group's 5 Feb report.

“In 2018, we made good progress especially in Russia and North America,” commented Hille Korhonen, president and CEO.

Growth, she said, was driven by the passenger-car-tires market, despite a delayed summer and lower new-car sales in Sweden and Norway.

However, the tire market in central Europe became “highly competitive” in 2018, according to the tire maker.

Utilisation of increased capacity in Finland, it said, is to be adjusted as the central European market “is less robust than estimated a year ago.”

This year, the company is targeting further growth in Russia, central Europe and North America, the company added.

Construction work at a new US factory as well as a heavy-tires capacity increase in Finland are going to plan, Korhonen also reported.

“We are aiming at doubling our sales in North America and growing our sales by 50% in central Europe in the next five years, said Nokian's leader.