Nokian Tyres Releases Half-Year Financial Report

Nokian Tyres released its half-year financial report Aug. 6. The complete report is also available on the company website here. Highlights include:

April–June 2019

Net sales decreased by 2.3% to EUR 419.1 million (about $468.58 million). With comparable currencies, net sales decreased by 2.6%.
Operating profit decreased to EUR 94.1 million (about $105.21 million), with no significant currency impact.
Cash flow from operating activities was EUR -20.8 million (about -$23.26 million) positively impacted by EUR 148 million due to the rulings on the tax disputes.
Profit for the period was EUR 73.0 million (about $81.62 million).
Earnings per share decreased to EUR 0.53 (About $0.59).

January–June 2019

Net sales decreased by 0.3% to EUR 762.8 million (about $852.85 million). With comparable currencies, net sales increased by 0.2%.
Operating profit decreased to EUR 148.0 million (about $165.47 million), negatively impacted by currencies.
Profit for the period was EUR 267.6 million (about $299.19 million) and was positively impacted by EUR 149.6 million (about $167.26 million) related to the rulings on the tax disputes concerning the years 2007−2011.
Earnings per share increased to EUR 1.94 (about $2.17) and were positively impacted by EUR 1.08 (about $1.21) related to the rulings on the tax disputes.
Cash flow from operating activities was EUR -89.8 million (about -$100.40 million) positively impacted by EUR 148 million (about $165.47) due to the rulings on the tax disputes.

“In the first half of the year, our net sales with comparable currencies were slightly higher than in the same period last year,” says Hille Korhonen, president and CEO. “The progress we made in heavy tyres and Vianor was offset by lower net sales in passenger car tyres. The drop in the passenger car tire sales volumes, mainly in Central Europe, had a negative impact on our operating profit. In addition, the result was impacted by currencies and higher material and production costs.”

Guidance for 2019 (updated June 14)

In 2019, net sales with comparable currencies are expected to be slightly higher and operating profit to be lower compared to 2018, the company says. In line with Nokian Tyres’ updated 2018 strategy, the company is targeting further growth in Russia, Central Europe, and North America. As a result of ongoing investment programs to support the growth, operating profit in 2019 will include significant additional operating costs.