Nokian reports strong showing in 2016
Nokian Tyres has released its Financial Statement Release 2016, which showed strong performance in a challenging market environment. In the fourth quarter in 2016 (October-December 2016) net sales increased by 9.1% to EUR 460.7 million (422.3 in 10–12/2015). Currency exchange rate changes affected net sales positively by EUR 4.1 million compared with the rates in 10–12/2015. Operating profit increased by 14.4% to EUR 108.5 million (94.8). Operating profit percentage was 23.5% (22.5%). The profit for the period increased by 643% to EUR 91.2 million (-16.8, including additional taxes and punitive interest of EUR 94.1 million in 2015).
In the January–December 2016 period net sales increased by 2.3% to EUR 1,391.2 million (1,360.1 in 2015). Currency exchange rate changes affected net sales negatively by EUR 29.9 million compared with the rates in 2015. Operating profit increased by 4.9% to EUR 310.5 million (296.0). Operating profit percentage was 22.3% (21.8%).
The profit for the period increased by 4.6% to EUR 251.8 million (240.7). The net effect of the Finnish Tax Authorities’ tax decisions related to the 2007–2010 tax dispute was positive by EUR 4.9 million for the full financial year 2016. The tax dispute for 2007–2010 is thoroughly described in the section “Tax rate”.
Earnings per share were EUR 1.87 (1.80).
The Board of Directors proposed a dividend of EUR 1.53 (1.50) per share. In 2017, with the current exchange rates, net sales and operating profit are expected to grow by at least 5% compared to 2016, the release said.