Nokian Tyres
At the Nokian Tyres Annual General Meeting, to be held April 6, 2006, the Board of Directors will propose the Members of the Board of Directors to be elected for the next period. The nominees are the current Members of the Board of Directors: Rabbe Grönblom, Hannu Penttilä, Petteri Walldén and Kim Gran and new Members of the Board of Directors: Hille Korhonen, Koki Takahashi and Alexei Vlasov.
Nokian has announced a number of changes at senior management level. Vice President, Purchases and Logistics, Mr. Kari-Pekka Laaksonen is appointed Vice President, Sales and Logistics as of 1 February 2006. Vice President, Nokian Car and Van Tyres, Mr. Antero Juopperi is appointed Senior Vice President, Strategy as of 1 March 2006. He is responsible for all Russian business activities, R&D and Corporate Development of the Nokian Tyres Group. Vice President, Finance and Control, Mr. Rami Helminen is appointed Vice President, Car and Van Tyres as of 1 March 2006.
At 686.5 million euros, Nokian Tyres’ net sales in 2005 were 13.8 per cent higher than 2004’s figure of 603.3 million euros. The operating profit was virtually static at 115.8 million euros (115.6 m) and the net result was up over 11 per cent to 82.2 million euros (73.8 m). Nokian said that growth in the European passenger car tyre market was slower than expected, with sales of winter tyres in the Nordic countries and Eastern Europe beginning exceptionally late, thus shortening the sales season. The strongest growth was experienced in Russia, Eastern Europe and North America, with sales of new cars growing significantly in Russia.
At the end of last year the International Quality & Productivity Center (IQPC) organised its first conference dedicated to tyre related topics. As the name of the event suggests, it mainly dealt with intelligent tyre technologies – meaning run-flat tyres and tyre pressure monitoring systems (TPMS). Participants were invited to take part in a day-long workshop immediately before the two-day conference with the first day completely focusing on new developments. The second conference day featured information about a wide range of different topics like for example tyre/road noise, chassis control and the design of alloy wheels.
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Nokian Tyres’ added two new studded tyres to its Hakkapeliitta product range. The Hakkapeliitta 5, a studded winter tyre for passenger cars, and Nokian Hakkapeliitta Sport Utility 5, for SUVs, are both designed to promote safe winter driving.
The tyres feature what Nokian describes as the ”bear claw”, which is intended to enhance performance and together with the further developed square stud, improve grip properties. The bear claw is a claw-like projection on the front edge of the tread blocks, which holds the stud in position during braking. The stud has been further developed by enhancing its square design. Several improvements to tyre structure and tread pattern are also said to improve the reliability of winter driving.
Sensor Products LLC has produced a “next generation” tyre tread footprint profiling system, which is already in use by manufacturers like Kumho. Capable of thousands of uses with consistent repeatability, the Tactilus is reportedly able to detect a wider range of pressures and offers greater advantages to engineers than its predecessor in the areas of adaptability and customisation.
During the year 2006, Nokian Tyres plc will publish Financial Statement Bulletin and 3 Interim Reports as follows:
The 2005 Financial Statement Bulletin, Tuesday, February 14, 2006
Interim Report, 1st quarter 2006, Wednesday May 10, 2006
Interim Report, 2nd quarter 2006, Tuesday August 8, 2006
Interim Report, 3rd quarter 2006, Thursday November 2, 2006
The Annual General Meeting of Nokian Tyres plc is tentatively scheduled for Thursday April 6, 2006.
The 2005 Annual Report with Financial Statements will be available on Nokian Tyres home pages, www.nokiantyres.com on Thursday 30th of March 2006 at the latest. The mailing of the printed Annual Report to the largest shareholders will start the same day.
The statutory negotiations between Nokian Tyres and labour union leaders regarding possible lay-offs ended in a mutual agreement the day after they began.
Both parties agreed that a maximum of 700 staff in the car tyre production segment of the business would be gradually laid off during this year and next.
Today Nokian Tyres began the statutory negotiations for the lay-off of some personnel as well as for possible dismissals of around 100 employees, working at the car tyre production facility in Nokia, Finland. The aim of the procedure is to adjust the car tyre production to suit current tyre demand and inventories.
Goodyear has taken its Premio franchise to Russia, opening its first store on 10 November. According to a Kommersant report, the company hopes to sign up around a dozen stores in Podolsk, Kalinigrad, Omsk, Rostov, Volgograd and other Russian towns before the end of the year. The establishment phase of the Premio chain is expected to be completed by 2008 Konstantin Alexeev, retail development manager at Goodyear Russia told the newspaper. The company reportedly invests $20,000 to $30,000 in the launch of each store, Alexeev explained.
By establishing a retail presence, Goodyear appears to be attempting to catch up with its competitors. Michelin, Bridgestone and Pirelli launched their projects as far back as 1999. Nokian Tyres set up its Vianor chain, while earlier this Autumn Amtel acquired more than 40 having bought out three Moscow retailers – Rosshina, Koleso, Profil.
Nokian’s net sales between January and September were up 13.7 per cent to 445.6 million euros compared with 392 million the year before. Operating profits totalled 65.1 million euros, virtually the same as last year. According to Nokian, the company’s target is to increase sales while keeping operating profit margins constant.
Nokian Tyres’ third quarter profits will be lower than the previous year, the company has announced. However, a company statement on the subject did not give any further details of exactly how much profits had dropped. The company cited expenses resulting from the development of its Russian operations and from the establishment of new Vianor outlets and tyre hotels as reasons for its weakened profits. Looking on the bright side, Nokian pointed to a 6 per cent increase in invoicing and cumulative sales growth of 14 per cent. Net sales for 2005 are expected to grow by more than 10 per cent, the company added.
Nokian Tyres has purchased US companies University Wholesalers Inc and University Wholesalers in order to strengthen its wholesale and logistics in the strategically important North American winter tyre markets. The purchase agreement was signed 28 of September 2005.
Nokian Tyres plc and YIT Construction Ltd have signed a contract agreement concerning the expansion of the Vsevolozhsk tyre plant. The agreement covers construction of a mixing department and warehouse. The contract, worth approximately 21.5 million euros, was signed in Vsevolozhsk on 23 September. Construction work will begin immediately and is scheduled for completion at the end of July 2006.
Nokian Tyres is considering building a new plant in Lesna near Valasske Mezirici in the Czech Repbublic. The new plant will have the capacity to produce 8 million tyres per year, according to the AFX news agency report. The report cited documents submitted to the EIA (Environmental Impact Assessment) process, which described Lesna as “one of the possibilities for the location of this plant in the region of central Europe.”
Should Nokian Tyres decide to build the plant, the CIA agency reported construction would begin during the fourth quarter, with production expected in December 2007. This report added that the company plans its first test operation of the plant in January 2008, a launch of the first half of production in December 2009, and then full production in December 2012. The plant will likely employ 937 people, CIA added.
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