Profits from the third quarter lower than the previous year
Nokian Tyres plc
Stock Exchange Release October 10, 2005 3.00 p.m.
PROFITS FROM THE THIRD QUARTER LOWER THAN THE PREVIOUS YEAR
Nokian Tyres’ Q3 profits will be lower than the previous year. The invoicing from the third quarter increased by 6% compared to the same period a year earlier. The cumulative sales growth was 14%.
The whole year outlook for the sales and profit development is better compared to the previous year. Net sales for the year 2005 are expected to grow more than 10%.
The active presales of car winter tyres during the first half of the year, slowed down Nokian Tyres’ sales growth in July-September. Distributor’s inventories are high and there is no need for re-orders until the consumer sales of car winter tyres will begin during the final quarter of the year. The strong sales growth of heavy tyres continues.
Expenses resulting from the development of the Russian operations, start-up of the new factory and from the establishment of new Vianor outlets and tyre hotels weakened the profits.
Nokian Tyres believes that its sales and profits will improve when the consumer sales of car winter tyres starts and the production capacity in Russia increases. The company is in a position to outperform previous year’s sales and profits during the last quarter of the year as well as during the whole year 2005.
Nokian Tyres plc
Vice President, Corporate Communications and IR
Nokian Tyres will arrange a conference call on Monday, October 10th at 5.00 p.m. Finnish time. Please, call +358(0)9 8248 2023 for participation. Participant’s Pin-code: 776
Further information: Mr. Kim Gran, President and CEO, Tel. +358 3 340 7336
Distribution: OMX and major media