Nokian Passenger Car Tyres

Growth story continues

The net sales of Nokian Passenger Car Tyres increased by 50% year-over-year to over EUR 1 billion. Operating profit was also record high, over EUR 365 million.

Nokian car tyres’ sales increased in all market areas, especially in Russia. Among product groups the SUV winter tyres showed the strongest growth. Winter tyres’ share of Nokian Tyres’ total sales mix grew year-over-year to 77% of volume. Nokian car tyres’ market share improved in the Nordic countries, Russia and Europe.

The new summer tyre range with the spearhead product Nokian Hakka Green, a tyre giving clear savings in fuel-consumption, was successfully launched. The autumn 2011 sales were boosted by several magazine test victories for Nokian Tyres in studded and non-studded Nordic winter tyres as well as in Central European winter tyres like the new Nokian WR D3.

Sales mix improved clearly, which together with successful price increases raised the Average Selling Price year-over-year, thus compensating for the raw material cost (EUR/kg) increase of 31% versus 2010.
Production output (pcs) grew by 47% compared with the previous year, boosted by the increased capacity in Russia with lines 9 and 10 coming on stream. The plant in Nokia has been back to 7 days/week full capacity as from August 2011. Productivity improved along with high utilization and capacity increases.
Fixed costs increased moderately compared to the sales growth which helped to improve margins. Inventories and receivables grew along with increased sales.

Construction of the new plant and warehouse next to the current ones in Russia started and has proceeded on schedule. The new plant is estimated to commence production with two additional production lines during 2012 and further capacity increase by two lines taking place during 2013–2014.

At the end of the year the order book was strong and the inventories were low in Nokian Tyres.

Nokian Passenger Car Tyres

Special tyres for narrow,
growing segments

Nokian Passenger Car Tyres business unit develops, manufactures and markets summer and winter tyres for passenger cars, vans and SUVs. Key products include studded and non-studded winter tyres, as well as high-speed summer tyres. Winter tyres account approximately 80% of the unit’s net sales. The Nordic countries, Russia and the CIS countries are the core markets, while Central and Eastern Europe, the Alpine Region and North America constitute other important market areas.

All tyres are developed in Finland. The main products are manufactured in the company’s own plants in Nokia, Finland, and Vsevolozhsk, Russia and are sold on replacement markets.