Nokian Tyres plc Interim Report January–September 2017, November 1, 2017, 8:00 a.m.
This release is a summary of Nokian Tyres’ Interim Report January–September 2017. The complete report is attached to this release. It is also available on the company website at www.nokiantyres.com/company/investors/.
Financial guidance (reiterated)In 2017, with the current exchange rates, net sales and operating profit are expected to grow by at least 10% compared to 2016.
Key figures, EUR million
Hille Korhonen, President and CEO: “In January–September 2017, Nokian Tyres demonstrated strong performance in all of its main markets. Our net sales and operating profit improved.
The Passenger Car Tyres business unit showed strong growth during 1–9/2017. Net sales increased in all markets. Operating profit increased clearly year-over-year. In Europe, the trend of sales shifting towards the consumer season has continued. We have been responding to the growing demand by increasing the production volumes at both factories and by building a new production line at the Russian factory. The new line has now been taken into use. In Q3/2017, raw material costs decreased slightly compared with Q2/2017. We estimate that raw material costs will increase by approximately 20% for the full year 2017 compared with 2016. We have implemented the necessary price increases in all markets, and the effect is already visible. We have continued to build the foundation for future growth by launching new products for all our markets.
Heavy Tyres increased its sales, operating profit and production volume. All product segments and market areas showed growth. In particular, sales of agricultural tyres were strong.
Vianor’s (own equity) net sales increased slightly but were affected by the tough pricing environment. The profitability improvement program is proceeding according to plan. Our branded distribution network, including Vianor, NAD, and N-Tyre stores, grew by 232 stores during 1–9/2017.
In September, we held a groundbreaking ceremony in Dayton (Tennessee, USA) to celebrate the beginning of the building work of our third factory. The new factory will be our first manufacturing facility in North America. The site will also house a distribution facility with a storage capacity of 600,000 tyres. Construction is scheduled to begin in early 2018, and production is planned to begin in 2020. Our ambition is to double our sales within North America in the next five years. Our goal is to lead the tyre industry in sustainable manufacturing as well as to make sure that our company is the employer of choice within the greater communities it serves.
In October, we received a tax reassessment decision from the Tax Administration regarding tax year 2011. We consider the reassessment decision of the Tax Administration to be unfounded and we are going to appeal to the Board of Adjustment and, if necessary, continue the appeal process in the Administrative Court.
Our employees have done a great job in improving all aspects of sustainability in our company. Our determination to be a sustainability pioneer in the tyre industry is demonstrated by our safe and eco-friendly products, as well as our inclusion in DJSI World. We are definitely on the right track, and the conditions are great for further improving our operations.”
BUSINESS UNIT REVIEWS
Passenger Car Tyres
* Excluding non-recurring items: Operating profit EUR -17.2 million, operating profit percentage -8.0%.** Excluding non-recurring items: Operating profit EUR -5.7 million, operating profit percentage -8.5%. *** Excluding non-recurring items: Operating profit EUR -14.9 million, operating profit percentage -7.1%.
Press and analyst meetings
Nokian Tyres published its Interim Report for January–September 2017 on November 1, 2017 at 8.00 a.m. Finnish time.
The result presentation for analysts and media will be held on November 1, 2017 at 10.00 a.m. Finnish time at Hotel Kämp (address Pohjoisesplanadi 29, Helsinki). President and CEO Hille Korhonen will present the interim report and answer questions from the audience.
The presentation can be listened to as an audiocast over the Internet at www.nokiantyres.com/resultinfo-Q3-2017 starting at 10 a.m.
The event can also be attended via conference call. Please dial in 5-10 minutes before the beginning of the event:
FI: +358981710495 UK: +442031940552 SE: +46856642702 US: +18557161597
An audio file of the event will be available on the company’s website later same day.
The Financial Statement Bulletin 2017 will be published on February 2, 2018. Releases and company information will be available at: www.nokiantyres.com/company/investors/.
Further information:Hille Korhonen, President and CEO, tel: +358 10 401 7733
Nokian Tyres plc
Antti-Jussi Tähtinen, Vice President, Marketing and Communications
Distribution: Nasdaq Helsinki, media, www.nokiantyres.com
Attachment: Nokian Tyres’ Interim Report January–September 2017
Interim Report January-September 2017 Presentation
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