Nokian Tyres: Net sales up 13% in 2017
The net sales of Nokian Tyres increased by 13% to EUR 1,572.5 million (1,391.2 in 2016) in 2017. Operating profit increased by 17.7% to EUR 365.4 million. The profit for the period decreased by 12.1% to EUR 221.4 million. Cash flow from operating activities was EUR 234.1 million and was affected by the payment of EUR 59 million in additional taxes with punitive tax increases and interest concerning the tax dispute related to the tax year 2011. The company paid the amount in November 2017.
The Board of Directors proposes a dividend of EUR 1.56 (1.53) per share. In 2018, with the current exchange rates, net sales and operating profit are expected to grow compared with 2017, the company said.
Net sales in Q4 2017 increased by 6.4% to EUR 490.4 million. Operating profit increased by 13% to EUR 122.6 million. The profit increased by 3.8% to EUR 94.7 million. Cash flow from operating activities was EUR 368.3 million.
“The Passenger Car Tyres business unit performed well in 2017. Net sales increased in all markets. Market growth was exceeded in Russia due to our competitive product portfolio, price positioning and supply capability. Sales and marketing investments and new products generated sales growth in Other Europe and North America. In Q4/2017, raw material costs decreased slightly compared with Q3/2017. We estimate that raw material costs will remain approximately at the same level for the full year 2018 compared with 2017. We are ready for the construction work of our Dayton factory. High customer satisfaction, a new global structure, our safe and eco-friendly products, and competent personnel create an excellent ground for future growth,” said Hille Korhonen, President and CEO, Nokian Tyres.