Nokian Tyres
In introducing the newest size in its Forest King F range, Nokian Tyres has described it as the “world’s strongest forest tyre”. Intended for fitment on CTL (cut-to-length) harvesters, the range has been extended to include size 710/45-26.5, the first tyre in the line-up to have a Ply Rate of 24. Nokian states that the cross-ply tyre “offers the best available reliability and load-bearing capacity for modern harvesters and forwarders.”
Bridgestone and Nokian are both chuffed with their tyres’ performance in the latest tyre test to be published by a German car magazine, and they’re not ashamed to mention this. The test in question was published in the August 8 edition of Auto Bild and compares the performance of five eco tyres – the Pirelli Cinturato P7, Bridgestone Turanza ER300 Ecopia, Nokian V, Goodyear EfficientGrip and Michelin Energy Saver. The quintet of size 205/55 R16 green products were fitted to a C-Class Mercedes and subjected to a number of wet and dry performance tests, while fuel consumption was measured with a highly precise in-car meter at speeds of 80, 100 and 130 kph. Rolling resistance was also measured in a test facility.
Following Nokian Tyres’s reporting of second quarter revenues of 260 million euros (13 per cent higher than consensus, up 36 per cent year-on-year), financial analysts have praised the Finnish tyremaker for beating net income predictions by up to 80 per cent and an overall “good quarter.” Searching the detail of the company’s second quarter presentation also reveals that, due to raw material price increases, the market can expect tyre price increases of 2 – 6 per cent during the summer and autumn of 2010. Other key company targets for the second half of the year include: to increase sales in all areas especially Russia, increase market share in core markets, and to “utilize the most feasible capacities.”
Net sales at Nokian Tyres rose 36.3 per cent year-on-year during the second quarter of 2010 to 260.4 million euros, giving the Finnish tyre maker total net sales of 444.2 million euros in the current financial year – an increase of 28.1 per cent over the first half of 2009. Operating profit for the quarter was 60.9 million euros, a year-on-year growth of 200 per cent, while operating profit for the first half stood at 82.0 million euros, up 369 per cent on the corresponding period of last year. Second quarter net profit amounted to 52.6 million euros, a growth of 342 per cent on the 11.9 million euro profit in quarter two of 2009. Profits for the first two quarters total 72.6 million euros, an impressive 4,740 per cent increase on the 1.5 million euro profit reached in the first half of the 2009 fiscal year.
Nokian Tyres has released a new tyre for straddle carriers. This new radial tyre, the HTS Straddle, is designed for work in harbours and goods terminals and combines, says Nokian, the high load-bearing capacity desired by operators with excellent driving comfort appreciated by drivers.
Nokian Tyres’ Nokian Z SUV has been rated as “very recommendable” by the German car magazine Auto Zeitung, reports Tire Review. In the magazine’s latest off-road tyre test, the Nokian Z SUV was noted as “the lowest rolling resistance in the test” with “nearly no weaknesses.”
Nokian Tyres reports that statutory negotiations at its Nokia, Finland plan came to an end on June 21. The results of these negotiations have been 13 permanent and 37 temporary lay-offs. Nokian comments that these cuts concern “all personnel groups” and adjust the plant’s production and support function resources to meet the shift system currently in use.
On June 11 the President of Finland awarded Kim Gran, the president and CEO of Nokian Tyres, the Finnish honorary title of “Vuorineuvos”. This traditional title is given to leading captains of industry, and comes with no responsibilities or privileges.
An overview of Nokian Tyres’ current position and strategy in Russia has been given by Anne Leskelä, the company’s Industrial Relations vice-president and CFO. She reported that the Russia and CIS region, which accounted for 26 per cent of the company’s 183.8 million euro sales in the first quarter of 2010, experienced a 42.7 per cent growth in sales to 46.8 million euros during the three-month period, with passenger car tyre market share increasing. Leskelä also stated Nokian Tyres’ objective of attaining market leadership in the premium tyre segment by 2014 in Russia and the CIS.
Nokian Tyres reports that on May 10 it entered into statutory negotiations affecting around 70 employees at its facility in Nokia, Finland. In a press statement, the tyre maker says approximately ten office employees and 60 blue-collar employees are involved in “adjustment measures” that include changing some of the rotating shift lay-offs initiated in January 2009 to full lay-offs, effective until further notice. Nokian also intends to terminate some employment contracts, it says.
The Western and Eastern Europe region grew in importance for Nokian Tyres throughout 2009. The Finnish tyre maker reports European sales accounted for 24 per cent of its total last year, up eight per cent from 2008. This percentage growth in sales occurred largely at the expense of those in Russia and the CIS, which last year made up only 20 per cent of Nokian’s total sales, as opposed to 34 per cent in 2008. Overall, the company reported decreased demand for its tyres in 2009, an occurrence it attributes to the financial crisis and lower vehicle sales. In its general overview of 2009, released April 8, 2010, the company confirmed that measures have been taken “to adjust production to reduced demand.”
Nokian Tyres has opted to raise prices in June after almost doubling estimates for the cost of raw materials this year. Nokian Tyres estimates that its raw material cost (EUR/kg) in 2010 will increase by 10-12 per cent compared to 2009 (the company’s previous estimate was 6 per cent) due to significantly increasing raw material prices. According to the company, this will affect its financial results in the second half of the year.
A prototype summer tyre developed by Nokian Tyres is said to have demonstrated 64 per cent superior rolling resistance against a premium ‘eco’ tyre in testing conducted by the Finnish tyre maker. In a test held on March 9, a Toyota Prius was fitted with the prototype tyres and also with Michelin Energy Saver tyres (both the same dimensions and pressure) and rolled down a ramp in neutral gear in windless conditions. As Nokian explains, the distance the car rolled corresponds directly with the tyres’ rolling resistance – the further the car rolls, the lower the rolling resistance. Nokian reports that the car managed to roll 129 metres when fitted with its prototype tyre, while it stopped after 78.9 metres when fitted with Energy Saver tyres.
Last week, North American tyre dealers got the opportunity to preview Nokian Tyres’ new winter tyre, the Hakkapeliitta 7, reports Tire Review. Touted as the most technologically advanced Hakka yet, the tyre is currently available in Europe, but won’t be widely available in North America until 2011, in time for the 2011-12 winter season.
Yesterday we reported on Continental’s performance in several European tyre tests, but the German manufacturer was not alone in receiving kudos. Finland’s Nokian Tyres reports its “Nokian H” received a “very recommendable” rating from Germany’s ADAC automobile association during its latest summer tyre test. Nokian notes with pride that its tyre received the best result for dry road performance while also performing well on wet roads, a result that prompted the ADAC to call the Nokian H a “very balanced summer tyre”.
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