Nokian Tyres posts third quarter gains, maintains guidance

Nokia, Finland – Nokian Tyres plc has reported a 13.6% year-on-year increase in third quarter net sales to €313.6 million and earnings (‘segments operating profit’) up 55.1% to €30.4 million.

The tire maker also expects to benefit from the start-up of its new factory in Romania, with commercial production on track to begin in early 2025.

For the nine months to 30 Sept, net sales came in 8.6% higher year-on-year at €874.8 million, while earning were 71.0% higher at €35.4 million.

The gains were despite negative factors in the first-half of 2024, including the Red Sea crisis and the impact of 'political strikes; in Finland on production, shipment schedules, and logistics costs.

For full-year 2024, Nokian’s guidance remained "unchanged", with “net sales with comparable currencies and segments operating profit are expected  to grow significantly compared to the previous year.”

In the third quarter, “net sales increased clearly, and we gained market share,” president and CEO Jukka Moisio said of the interim results.

Moisio linked the sales performance in part to improved passenger car tire availability in central Europe and the Nordics, while the earnings improvement was “driven by sales volume growth and lower raw material costs.”

However, Nokian’s leader went on to describe the car and tire market as “weak”, adding that “the current economic uncertainties make it difficult to estimate the market and consumer behaviour.”