Nokian ends Q3 in black, despite 32% fall in revenues

ERJ staff report (DS)

Helsinki, Finland -- Nokian Tyres' net sales decreased by 32.3 percent to euro 550.8 million (previously euro 813.2 million in Jan-Sep 2008). Operating result amounted to euro 61.2 million (previously 200.5).

In order to adapt the production to seasonal changes in demand Nokian Tyres plans to temporarily stop the car tyre production in the Nokia plant for 17 working days starting on December 7, 2009. Year-end production will also be cut at the Russian plant.

Nokian said sales and operating result improved clearly in the third quarter compared to previous quarters but were still down versus previous year. Sales and operating margin improved compared to previous quarters due to preseason deliveries of winter tyres, restocking of heavy tyres by OE customers, production restructuring and reduced raw material cost.

Net sales for 2009 are estimated to be EUR 760-810 million with second half of the year showing clear improvement in profitability versus the first half of 2009. Fourth quarter operating margin is estimated to be lower than third quarter due to a weaker mix in sales and production. Full year 2009 cash flow is expected to be significantly better but net sales and operating profit significantly lower than in 2008.

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Press release from Nokian