Nokian reports strong first half with 15% better profit
Nokian Tyres has reported H1 net sales increased by 17.2% to €718.9 million ($844.2 million) compared to €613.3 ($720.2 million) in H1 2016. Profit for the half increased by 15.1% to €116.4 million ($136.7 million) up from €101.2 ($118.8 million) in H1 2016.
The firm’s earnings per share grew to €0.86 an increase from €0.75 in the previous year. For the April-through-June quarter, Nokian’s net sales increased by 16.5% to €393 million ($461.5 million) compared to €337.4 ($396.1 million) during Q2 2016. Profit for the period increased by 16% to €71.1 million ($83.4 million) up from €61.3 million ($71.9 million).
Earnings per share for Q2 were €0.52 compared to €0.46 in the corresponding period last year. The winter tyre specialist saw growth in its passenger car tyre business and in one of its main markets, Russia, due to its stronger currency, price increases and low carry-over stocks from 2016. A new production line in Russia will be in use by the end of the year, Hille Korhonen, Nokia’s president and CEO, said in his comments. Growth was also experienced in Nokian’s heavy tyres with an increase its sales and production in the forestry business.
The Finnish company added that it estimates raw material costs will increase by approximately 20% for full year 2017 compared with 2016. In full-year guidance, net sales and operating profit are expected to grow by at least 10% compared to 2016.