Nokian reports higher sales in 2005

Nokia, Finland -- Nokian Tyres' net sales in 2005 were up by 13.8 percent on the previous year to Euro 686.5 million (2004: Euro 603.3 million). Operating profit was at the previous year's level at Euro 115.8 million (Euro 115.6 million).

Kim Gran, president and ceo, said, "Despite the challenging market situation, stiffer competition and significant investments in our future, Nokian Tyres was able to increase net sales and maintain a healthy profit level.

"The consumer sales of winter tyres accelerated at the end of the year, and the strong sales efforts produced good results. The Q4 results were on a par with the previous year. Once the consumer sales of winter tyres got off to a good start, tyre inventories started to diminish and we were able to repatriate sales receivables as expected. However, inventories and receivables were larger than at the previous year-end."

"In 2006 we will continue to invest in future growth. Intense competition will persist in the tyre markets, but, as in previous years, Nokian Tyres continues to be well equipped for sales growth and improved profit development."