Nokian Tyres increases net profit 15.5% in 2015; sales and operating profit down

While Nokian Tyres was unable to maintain its turnover and operating profit in 2014, the company achieved a sizable increase in net profit.

The Finnish company’s turnover declined 2.1 per cent to €1.36 billion due to lower sales volumes and currency devaluation in Nokian’s largest national market, Russia. And according to Ari Lehtoranta, Nokian Tyres’ president and CEO, the outlook for Russia in 2016 remains negative. Operating profit declined 4.1 per cent to €296 million, however net profit rose 15.5 per cent to €240.7 million.

“Despite the delayed winter season and Russia’s further deteriorating economic challenges, we were able to deliver strong results,” commented Lehtoranta. “Like we reported earlier, winter season deliveries moved later; in Central Europe in great extent even to the fourth quarter. Our teams were able to achieve market share gains based on the world’s safest product portfolio. North American and Russian winter seasons were almost non-existing and this resulted in lower sales in 2015 and higher inventory levels going to 2016 in these market areas.” He added that the Heavy Tyres business improved its profitability and increased net sales, while Vianor was affected by the mild winter and recorded a loss.

Full information on Nokian Tyres’ Q4 and full-year 2015 results can be found in our company profiles and reports section