Nokian Q1 profits fall on higher raw materials prices

Nokian, Finland - Despite higher selling prices, profits at Finnish tyre maker Nokian fell slightly in the first quarter of 2006.

The Group's net sales were up by 15.4 percent to €149.4 million (€129.4 million in

Q1/2005). Operating profit amounted to €13.4 million (€14.6 million). The goal for 2006 is to achieve steady growth in sales, a stable, upward trend in profits and better capital management.

In a statement, president and CEO, Kim Gran said, "Nokian Tyres' net sales increased, and summer tyre market shares improved clearly in all core markets, especially in Russia and the Nordic countries. Heavy tyres recorded again record-breaking numbers for sales and profits. Nokian Tyres' result of the early part of the year was, as expected, weaker than in the previous year as a result of a weaker sales mix and increased raw material costs. First quarter sales focused on summer tyres and contract manufactured products, which resulted in lower average prices compared to the same period last year. Vianor's performance was strained by the consumer sales of summer tyres shifting to the second quarter. Production volumes and sales at the Russian plant increased as planned."

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Press release from Nokian

Nokian Tyres Q1 pretax dips on new sales mix and high raw materials costs Forbes (Finland)