Nokian reports sales, profits up by 20% in Q2

ERJ staff report (DS)

Nokia, Finland - Nokian Tyres has reported healthy growth in the three months to June 2012. Net sales increased 22 percent to euro 413.8 million. Operating profit increased by 21 percent to euro 113 million.

Kim Gran, President and CEO said, ““We continued to show strong progress and good results in the first semester of 2012. Our strategy of focusing on value added growth, replacement and consumer business - primarily winter, SUV and premium summer tyres - high productivity and a tight ship continues to pay off.

”Increasing production in our Russian factory improved productivity and boosted production

output (tons) by 27 percent versus H1/2011. The new plant, wall to wall with the existing Russian factory,

produced its first tyres in June. The ramp-up of capacity in the new plant continues as the second line

comes on stream during end Q4/2012. Production in Nokia, Finland has been cut and moved to Russia

to further improve productivity in H2.

”The demand for premium truck tyres and retreads has fallen by 30 percent in Europe. The Nordic countries

have suffered the least with 2 percent decrease in truck tyre demand. In Russia the drop in demand for

premium truck tyres has been approximately 20 percent whereas demand for cheaper radial tyres is

increasing. “

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Press release from Nokian