Nokian Sales Grow 18.3 per cent, pre-tax profits down 10.8 per cent

Nokian’s net sales grew to 349.4 million euros (18.3 per cent) in the first half of 2006. During the same period operating profit amounted to 48.6 million euros (2005: 46.1 million), up 5.4 per cent. However profits before tax fell 10.8 per cent to 42 million euros in the period. Nokian Renkaat shares soared 18 per cent higher in response to the news.

Nokian’s sales grew particularly strongly in Russia and the CIS countries where sales shot up 50.2 per cent compared to the corresponding period last year. During the period Nokian’s total production capacity was reportedly in full use and production volumes increased by some 16.8 per cent.

Commenting on the results Nokian president and CEO, Kim Gran said: “In spite of the challenging market situation, Nokian Tyres’ net sales increased and operating profit picked up, especially in the second quarter. Passenger car market shares improved clearly in all core markets.”

The company says it is positioned to achieve its objectives set for 2006: steady growth in sales, upward trend in profits and better capital management.