Sales And Profits Rise For Nokian
Good 4Q sales have helped Nokian to increase turnover and profits for last year. Sales for 2002 rose 13.2 per cent to 479.
2 million Euros (2001: 423.4 m). Operating profit was up at 60.
1 million Euros (2001: 50.1 m) and profit before taxes rose 29.5 per cent to 48 million Euros (2001: 37 m).
Below are brief details of how the different product areas fared. Figures in brackets are for comparable periods in 2001. Passenger car tyres Sales grew 17.
5 per cent to 242.8 million Euros (206.6 m).
Operating profit grew too, to 51.4 million Euros (41.5 m).
Nokian’s market shares improved in Europe, Russia and the USA and demand for the Nokian WR, a winter tyre aimed at Central Europe was helped by good test results in German magazines. As part of the joint venture with Amtel in Russia, 100,000 Nordman winter tyres were manufactured in Amtel’s Russian plants. Winter tyres made a major contribution to the good figures, accounting for 73 per cent of total sales.
New products made up 44 per cent of total sales. Production volumes increased to 5.1 million units from the 2001 figure of 4.
8 million. Heavy tyres Sales were up 7 per cent to 55 million Euros (51.3 m) and operating profit rose to 4.
7 million Euros (1.7 m). The increase in demand was strongest for forestry tyres and special radial agricultural tyres.
Original equipment tyres accounted for 40.7 per cent of sales and new products for 10.3 per cent.
Bicycle tyres Sales totalled 5.5 million Euros (5.3 m), despite a shrinking market.
There was an increase in demand for both replacement and OE tyres, with strong demand for studded tyres in Nordic countries. New products accounted for 16 per cent of sales and manufacturing volumes totalled 830,000 bicycle tyres. Retreading materials Sales slipped to 11.
2 million Euros (11.4 m), but profitability was improved. Production volumes fell to 4,326 tons (4,727 tons).
Demand for car tyre retreading materials was particularly weak, but sales of high margin winter treads improved. Vianor Sales of the Vianor chain grew 11.8 per cent to 216.
2 million Euros (193.4 m). Operating profit improved too, to 8.
9 million Euros (7.1 m). There was a marked increase in sales to car dealers and wholesalers and sales of truck and agricultural tyres were strong.
Roadsnoop Development of this pressure monitoring system has taken longer than expected and the target launch date was not met. Roadsnoop is now scheduled to come to market in the first half of this year. Outlook The joint venture with Amtel is proceeding as planned, with production of 900,000 tyres planned for this year in Amtel factories and 3.
6 million tyres for next year. Investments of around 25 million Euros are needed at the Voronezh and Kirov factories over the next two years, plus a new factory for the manufacture of Nokian brand tyres isplanned. In January, Nokian and Matador signed a manufacturing agreement, under which Matador will make Nokian car summer tyres (S, T and H-rated) at is factory in Slovakia.
Volume for this year will be 100,000 tyres, increasing to 300,000 tyres in 2004 and 2005. The agreement will be reviewed in 2005 and renewal after this date will be on an annual basis. Looking ahead, Nokian warns of uncertain global economic trends and rising raw material costs.
The company will continue to focus on the profitable winter and forestry tyre markets and products and is confident that its 2003 figures will outperform last year’s results. As the amount of contract manufacturing increases, so more capacity will be freed at Nokian’s own plant to manufacture special, high profit margin products. The product mix will also improve, with new products in many segments,.
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