Nokian reports higher sales, profits for Q3

ERJ staff report (DS)

Nokia, Finland -- Nokian Tyres has reported higher sales and profits for the three months to 30 September 2010

The Group's net sales increased by 25.2 percent to euro 689.4 million (euro 550.8 million in Jan-September 2009). Operating profit grew to euro 130.4 million (euro 61.2 million) and Earnings per share increased to euro 0.85 (euro 0.23).

Kim Gran, President and CEO said, "The demand for Nokian Tyres' core products has seen a very strong growth during Q2 and Q3 and continues to grow. The growth is driven by improving economies in the Nordic countries and Russia, strong growth in sales of new cars and better consumer confidence."

he continued, "Car tyre price increases were implemented as planned and had a clear positive effect on Average Selling Price with a delay as from September. Raw material cost increase still had a negative impact on margins in Q3. The ASP continues to increase with mix improvement and further price increases becoming effective in Q4. Our target of a more than 4 percent ASP improvement for full year 2010 seems realistic."

In the third quarter of 2010 Nokian Tyres Group recorded net sales of euro 245.2 million (204.1), showing an increase of 20.2 percent on the corresponding period a year earlier. Sales increased in the Nordic countries by 26.7 percent and in Russia by 79.5 percent. The consolidated sales in Russia and CIS decreased by 4.9 percent. In Central and Eastern Europe sales grew by 32.2 percent and in North America by 35.6 percent.

Raw material cost (EUR/kg) in manufacturing increased in the third quarter by 26.4 percent year-over-year and 11.6 percent versus the second quarter of 2010. Fixed costs were euro 70.3 million (62.1), accounting for 28.7 percent (30.4 percent) of net sales.

In the nine months to September, Nokian recorded net sales of euro 689.4 million (550.8), showing an increase of 25.2 percent on the corresponding period a year earlier. In the Nordic countries sales increased by 25.0 percent representing 42 percent (43 percent) of the group's total sales. Sales in Russia increased by 74.5 percent. Russia and CIS consolidated sales grew by 21.0 percent and formed 21 percent (22 percent) of the group's total sales. In Central and Eastern Europe sales were up by 36.9 percent year-over-year representing 27 percent (24 percent) of the group's total sales. In North America sales grew by 6.6 percent and were 9 percent (11 percent) of the group's total sales.

Sales of passenger car tyres were up by 25.9 percent representing 65 percent (64 percent) of the group's total sales. Heavy tyres' sales increased by 59.2 percent and were 7 percent (6 percent) of the group's total sales. Vianor's sales grew by 9.8 percent forming 24 percent (27 percent) of the group's total sales. The sales of Other operations was up by 47.0 percent representing 4 percent (3 percent) of the group's total sales.

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Press release from Nokian