Nokian Net Income Down 17% in 2008

Sales at Nokian Tyres increased 5.5 per cent in the twelve months to December 31, 2008, totaling 1.08 billion euros for the year. During the final quarter of the 2008 year, however, sales slumped 24.9 per cent to 267.7 million euros. Annual operating profit, at 247.0 million euros, was also up 5.5 per cent, however during the final quarter it more than halved to 46.5 million euros. Net profit for the 12 months amounted to 139.9 million euros, 17.2 per cent less than in 2007. Nokian Tyres reports a net loss of 11.6 million euros for the final quarter.

“On the annual level, the sales and operating profit of Nokian Tyres improved, although the last quarter was clearly weaker year-over-year,” commented Nokian president and CEO Kim Gran. “Sales and market shares grew in all key markets, especially in Russia and the Ukraine. Sales also grew in the Nordic countries and North America.”

Commenting on recent worldwide events, Gran said: “The steep slowdown in the global economy reduced clearly the demand for tyres at the end of 2008 in all product groups. We started to adjust our operations and cost structure decisively to comply with weaker demand. We have implemented price increases to cover changes in exchange rates and are now in a good position to face a period of economic slowdown. We have a strong balance sheet, good profitability and high market shares in our key markets. Our focus in 2009 will be on securing cash flow and managing risks.”