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Nokian Tyres Interim Report for January-September 2009: Seasonal improvement, restructuring implemented – Market headwind stabilized

Tue November 3 07:19 am 2009 in category Stock exchange releases
Nokian Tyres plc Stock Exchange Release Nov 3, 2009, 8:00 a.m.

Nokian Tyres Interin Report for January-September 2009: Seasonal improvement, restructuring implemented - Market headwind stabilized



Nokian Tyres’ net sales decreased by 32.3% to EUR 550.8 million (EUR 813.2 million in Jan-Sep 2008). Operating result amounted to EUR 61.2 million (200.5) and Earnings per share was EUR 0.23 (EUR 1.22).

Sales and operating result improved clearly in the third quarter compared to previous quarters but were still down versus previous year. Sales and operating margin improved compared to previous quarters due to preseason deliveries of winter tyres, restocking of heavy tyres by OE customers, production restructuring and reduced raw material cost.

In January-September cash flow improved as planned by EUR 162.6 million year-over-year due to cost cuts, lower investments and reduced trade receivables. Wages and salaries were cut by EUR 30.6 million and fixed costs excluding salaries by EUR 17.5 million compared to the corresponding period a year earlier. Trade receivables reduced by EUR 189.9 million year-over-year.

In order to adapt the production to seasonal changes in demand Nokian Tyres plans to temporarily stop the car tyre production in the Nokia plant for 17 working days starting on December 7, 2009. Year-end production will also be cut at the Russian plant.

Outlook and guidance for 2009 (updated):
Net sales for 2009 are estimated to be EUR 760-810 million with second half of the year showing clear improvement in profitability versus the first half of 2009. Fourth quarter operating margin is estimated to be lower than third quarter due to a weaker mix in sales and production. Full year 2009 cash flow is expected to be significantly better but net sales and operating profit significantly lower than in 2008.

Read the whole stock exchange release here.