This release is a summary of Nokian Tyres’ Half year financial report January–June 2016. The complete report is attached to this release. It is also available on the company website at https://www.nokiantyres.com/company/investors/.
Financial guidance (full year reiterated)
In 2016, with the current exchange rates, net sales and operating profit are expected to remain at the same level compared to 2015.
Key figures, EUR million
Ari Lehtoranta, President and CEO:
“Our sales volumes in the second quarter were higher than we estimated earlier. Our customers’ winter tyre inventory situation made the winter tyre markets in North America and Russia as challenging as we had anticipated, but our good performance in Europe and in summer tyres in general helped to balance the situation.
Heavy Tyres had slightly higher sales than last year, but profitability declined due to the higher share of truck tyres and the timing of some marketing activities. Productivity continued to improve both in Heavy Tyres and Passenger Car Tyres. Vianor’s result in the second quarter was clearly better than in the first quarter, but it was not enough to compensate for the bad start of the year. Pricing pressure in retail remains high.
The production volumes were higher than last year. The decline of raw material costs continued, and our lower production costs supported profitability. The development of ASP continued to be negative but, aside from the unfavorable currency impact, both price and mix changes were positive. Currencies caused a negative impact of EUR 17.4 million; net sales would have grown by 2.7% with comparable currencies.
Profitability remained at a good level. We were forced to book an additional EUR 6.3 million of bad debt provisions for the same problematic cases we have had in Russia for some time now. This took the operating profit below last year’s level by -3.8%.
The growth of our branded distribution network continued but was slower than last year. The number of Vianor, NAD, and N-Tyre outlets in our network grew by 122 in H1/2016. The network currently includes 1,482 Vianor stores, and the NAD/N-Tyre network has already grown to 1,456 stores. The economic situation in Russia and the CIS slowed down the growth of the network, as some of our partner outlets have been closed.
I am very proud of our people and their performance right now. Russian sales declined by almost 30%, and mild winter left inventories in Russia and North America. We continued to grow summer tyre sales, and even though debt collection has become more problematic in Russia, we ended up very close to last year’s sales and profitability. I am especially happy that we managed to increase our market share as well as price position in Central Europe at the same time. A strong position in the core markets, investments in growth markets, an expanding distribution channel, continuous investments in productivity, and competitive products give Nokian Tyres opportunities to strengthen its position and to provide healthy margins and a strong cash flow also in the future.”
BUSINESS UNIT REVIEWS
Passenger Car Tyres
Press and analyst meetings
The result presentation for analysts and media will be held in Hotel Kämp in Helsinki on August 9, 2016 at 10:00 a.m. Finnish time. An audio broadcast of the presentation can be listened to online starting at 10 a.m. at: www.nokiantyres.com/resultinfo-Q2-2016
The event can also be attended via a conference call. Please dial in 5–10 minutes before the beginning of the event: FI +358 9 8171 0495, UK +44 20 31940552, SE +46 85 664 2702, US +1 855 7161597.
The stock exchange release and presentation material will be available before the event from https://www.nokiantyres.com/company/investors/.
An audio recording of the event will be available on the company’s website later on the same day.
Nokian Tyres interim report January–September 2016 will be published on November 1, 2016.
Releases and company information will be available at: https://www.nokiantyres.com/company/investors/
Further information:Mr. Ari Lehtoranta, President and CEO, tel:
Half year financial report 2016 Presentation material
Share this page