Wed February 9 08:00 am 2011 in category Stock exchange releases
Nokian Tyres plc Stock Exchange Release 9 February 2011, 8 a.m.

Nokian Tyres plc Financial Statements Bulletin 2010: Strong results, profitable growth back on track

Nokian Tyres group’s net sales increased by 32.5% to EUR 1,058.1 million (EUR 798.5 million in 2009). Operating profit grew to EUR 222.2 million (EUR 102.0 million) and Profit for the period to EUR 169.7 million (EUR 58.3 million). Earnings per share increased to EUR 1.34 (EUR 0.47). Cash flow from operations improved to EUR 318.8 million (EUR 123.1 million). The Board of Directors proposes a dividend of EUR 0.65 (EUR 0.40) per share.

Outlook and guidance:
In 2011, the company is positioned to provide strong sales growth and to improve operating profit compared to 2010.

Kim Gran, President and CEO:

“A clear improvement in the drivers for demand in core business brought Nokian Tyres back to a strong growth track. The sails are now bulging with strong tailwind as we go into 2011 with thick order books and growing capacity.

The demand for Nokian Tyres’ core products started to improve rapidly in Q2 in all our business units. The clear turnaround was driven by improving economies in the Nordic countries and Russia, strong growth in new car sales and better consumer confidence. Our operations were ramped up accordingly and we need to further increase capacity in order to keep up with the growing demand.

We managed to increase market shares, implemented price increases and improved our sales mix. Our distribution network continued to expand not only in Nordic countries and Russia & CIS but also in Central Europe. The Vianor chain opened 148 new shops now totalling 771 in 20 countries.

Our productivity increased significantly as a result of implementing structural changes and an improving utilization of our capacities. Our strong winter tyre brand and solid distribution foothold in core markets together with a snowy winter in all Europe helped us to present good results and strong growth for the whole year.

We will increase our investments significantly in 2011 to secure future growth. This includes two additional production lines for Russia (numbers 9 and 10) which will further improve our output and productivity. In addition, we are looking for further capacity expansion of both production and distribution.

Going into 2011 our order book is all-time high and it provides us with a good opportunity to increase sales, again operating more selectively. We will also continue to launch new product lines, increase prices and improve mix to offset higher raw material costs. Low inventories in the distribution channel and our growing production capacity offer a good starting point for further profitable growth in 2011.”

Read the whole Financial Statement Bulletin here.