Nokian results lifted as demand holds up
Finnish tire maker reports ‘strong volume and profit growth’
Nokia, Finland – Nokian Tyres has reported a strong growth in both sales and profit over the three months to end of September, helped by higher volumes and price adjustments.
Third quarter operating profit was up 43% at €89 million on 26.4% higher sales of €443.5 million, Nokian reported 2 Nov.
Over the first nine months of the year, operating profit grew 340% to €215 million, on 33.4% higher sales of €1.2 billion.
“In July–September, we achieved a record-high third quarter net sales,” said Jukka Moisio, president and CEO.
The official linked the ‘significant’ profit growth to ‘early timing of deliveries,’ and ‘higher sales volume.’
As anticipated, increased raw material and logistics costs, including the shortage of container capacity, were visible in the third quarter, he added.
“We have taken mitigating actions, including price increases, to reduce the impact of cost inflation,” Moisio said.
“We have announced further prices increases in a wide range of markets and products, and we will continue to carefully control costs, as cost inflation is expected to continue.”
To meet demand, Nokian operated its factory in Vsevolozhsk, Russia, and heavy tires factory in Finland at full capacity during the third quarter.
In Dayton, Tennessee, the tire maker said it continued to ramp-up production to reach an output of around one million tires in 2021.
For the full year this year, Nokian said it expects sales and operating profit to “grow significantly [compared to last year]”.
“The global car and tire demand is expected to pick up, but the Covid-19 pandemic continues to cause uncertainties for the development,” it added.