Nokian Tyres
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”.
Upon the release of his company’s annual figures, Nokian Tyres president and CEO Kim Gran commented that “eventually, after taking decisive action in a tough market, we achieved quite satisfactory results in 2009.” This action, which included cutting investments by 94.7 million euros and wages and salaries by 44.6 million, helped the company achieve an annual net profit of 58.3 million euros, a figure that is, coincidentally, 58.3 per cent lower than the company’s 2008 profit. Net sales for January to December 2009 amounted to 798.5 million euros, 26.1 per cent less than a year earlier. Operating profit was 102.0 million euros compared with 247.0 million for the 2008 financial year.
Nokian Tyres’ dedication to grip in the snow goes beyond its tyre products, as was witnessed at the Nokian Tyres Snow Soccer World Championships in Finland on 6 – 7 February 2010. The sporting event, which Nokian describes as “very crazy, but so cheerful”, involves 1,000 players and 70 teams competing on a playing surface covered by 50 centimetres of snow. This new snow sport, adds the Finnish tyre maker, is extreme fun: exhausting, difficult and adventurous, and the players with the most grip and skill will prove to be the winners.
Nokian Tyres reports that its Vianor retail chain reached an important milestone in December 2009 with the opening of its 600th outlet. The store, located in the Ukrainian city of Kharkov, is what Nokian refers to as an ‘entrepreneur-led partner outlet’. The Ukraine, the company adds, now ranks second behind Russian in terms of countries with the largest number of Vianor outlets.
Nokian Tyres reports that the market launch of its new Hakkapeliitta 7 SUV studded tyre has provided 4×4 drivers “who enjoy driving in varying winter conditions” a “superior alternative” in terms of grip and driving stability. This new tyre, the Finnish manufacturer states, combines unyielding grip with exceptional durability and unique driving comfort. Designed for heavy use, this latest addition to the Hakkapeliitta winter tyre range is intended to continue Nokian’s emphasis on what it identifies as a core strength: the world’s leading winter tyre expertise. Nordic winter conditions were a focus when designing the Hakkapeliitta 7 SUV, and Nokian reports the tyre can easily adjust to quick changes in weather and temperature, from frost to snow storm to rain. The technical solutions incorporated into the passenger car version of the Hakkapeliitta 7 have also been adapted for use in this 4×4 tyre.
The National Board of Patents and Registration of Finland (NBPR) has admitted Nokian Tyres’ “Hakkapeliitta” brand name to its ‘List of Trademarks with a Reputation’. So far, 42 trademarks have been admitted to the list. Admission to the list requires substantial evidence of trademark's awareness in Finland, and is used to help avoid trademark disputes.
Nokian Tyres Inc. will raise prices on all of its tyres by 3 to 6 per cent, according to American tyre news source Tire Review. The increase, effective 11 January, 2010, was “due to market conditions and the escalation of raw material costs,” Nokian said.
The European Tyre & Rubber Manufacturers’ Association and its twelve leading tyre corporate members have “welcomed” the objectives of the mandatory tyre performance information requirement voted upon by the European Parliament yesterday. Noting the braking performance and fuel efficiency aspects covered by the upcoming tyre labelling, ETRMA says it is “happy that these aspects are fully reflected in the regulation”. The organisation adds that expected fuel savings from the increased use of fuel-efficient tyres will lead to saving an estimated 20 million tonnes of CO2 per year and 10 billion euros of fuel per year.
Nokian Tyres claims its Hakkapeliitta 7 studded winter tyre was successful in recent comparison tests conducted by European car magazines, reported Tire Review. The tyre achieved test victories in publications from Finland, Sweden and Russia, Nokian said.
Investment firm BlackRock Investment Management (UK) Ltd. now holds a more than 5 per cent share in Nokian Tyres plc, Tire Review reports. The Finnish tyre maker announced the 9 November transaction, and is required to report when any single shareholder gains a 5 per cent share or greater. According to Nokian, Black Rock now holds a total of 6,270,634 Nokian Tyres’ shares representing 5.02 per cent of company’s 124,848,890 shares and voting rights.
North American motorists on the hunt for all-season tyres now have a greater selection to choose from following the release of the eNTYRE from Nokian Tyres. The Finnish company describes its new tyre as a premium product designed specifically for the North American market following input from its dealers. When setting out to design the eNTYRE, Nokian reports adhering to the concept of providing drivers with a ‘green tyre’ that provided ultimate in safety, driving comfort and performance.
Nokian Tyres says it signed a 180 million euro syndicated revolving credit facility for three years with international banks on November 4. The facility, the company reports, will be used for general corporate purposes and to refinance the existing 180 million euro syndicated revolving credit facility signed on April 19, 2005. The Mandated Lead Arrangers and Bookrunners are Calyon, Handelsbanken, Nordea, Pohjola Bank, Sampo Bank and SEB. DnB NOR acts as an arranger. Pohjola Bank was the sole coordinator for the facility, Nokian adds.
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