Nokian Tyres posts impressive H1 2017 results
Nokian Tyres has posted strong first half 2017 results with solid full year expectations. Net sales increased by 17.2 per cent to EUR 718.9 million. Currency exchange rate changes affected net sales positively by EUR 32.2 million during January–June 2017. Operating profit increased by 19.6 per cent to EUR 153.0 million. The profit for the period increased by 15.1 per cent to EUR 116.4 million.
For the April-June second quarter of 2017, net sales increased by 16.5 per cent to EUR 393 million. Currency exchange rate changes affected net sales positively by EUR 10.9 million compared with the rates in the same period in 2016. Operating profit increased by 21.5 per cent to EUR 94.1 million. The profit for the period increased by 16 per cent to EUR 71.1 million.
“The Passenger Car Tyres business unit showed strong growth during H1 2017. Net sales and operating profit increased clearly year-over-year, and we were able to increase our market shares in our main markets. The growth was driven by Russia due to its stronger currency, price increases and low carry-over stocks from 2016. The growth in Russia will be moderate in H2 2017, as H2 2016 was already strong. We have been responding to the growing demand by increasing the production volumes at both factories and by building a new production line at the Russian factory. The new production line will be taken into use by the end of the year,” said Hille Korhonen, President and CEO, Nokian Tyres.
He added that that raw material costs will increase by approximately 20 per cent for the full year 2017 compared with 2016.
In 2017, with the current exchange rates, net sales and operating profit are expected to grow by at least 10 per cent compared to 2016, the company said.