During January and February of 2006 JSC “Nizhnekamskshina” says it produced 100,000 less tyres than planned. According to the company, the basic reason for the disruption was the high rubber price. The beginning of March has not proved to be much better for Russia’s largest domestic tyre producer. In Nizhnekamskshina’s words the situation “remains complex” due to short supplies of natural rubber.
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.
Last week Continental shares reached a new high of 86.51 euros while the competitors Toyo (-7%), Yokohama (-6%) and Nokian (-5%) lost ground. Michelin, by comparison, has remained stable at around 50 euros. Goodyear started a downswing at the end of February from more than 15 euros to 11 euros and is in danger of falling below 10 euros in the near future.
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.
Finnish tyre manufacturer Nokian recently released the country king agricultural trailer tyre. With the launch of the new product, Nokian is aiming, like other manufacturers, to satisfy the demands farmers and contractors that need tyres that can cope with increased load capacity.
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.
Goodyear is aiming to increase its market share in Finland by achieving a 10 per cent sales growth target. According to Deutsche Bank analysts the manufacturer aims to do this by focusing on distribution and becoming the second or third strongest player in the country (behind Michelin and Continental), compared with its current number four position.
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.
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.
Tyre manufacturer, Balkrishna Industries Ltd says it will invest 3 billion rupees (£39 million) on expansion plans. The board of directors has reportedly approved the plans which include increasing tyre manufacturing capacities at Bhiwadi, Waluj and Chopanki plants to 100,00 tonnes per annum against 60,000 presently.
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 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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