By Denna Bowman
Nokian Tyres has announced that it has boosted net sales by 32.5% to EUR 1,058.1 million in 2010, while operating profit grew to EUR 222.2 million.
The tyres manufacturer also announced that the company is positioned to provide strong sales growth and to improve operating profit in 2011.
Kim Gran, President and CEO of Nokian Tyres, said: “A clear improvement in the drivers for demand in core business brought Nokian Tyres back to a strong growth track. The sails are now bulging with strong tailwind as we go into 2011 with thick order books and growing capacity.
“The demand for Nokian Tyres’ core products started to improve rapidly in Q2 in all our business units. The clear turnaround was driven by improving economies in the Nordic countries and Russia, strong growth in new car sales and better consumer confidence.
“Our operations were ramped up accordingly and we need to further increase capacity in order to keep up with the growing demand.
“We managed to increase market shares, implemented price increases and improved our sales mix. Our distribution network continued to expand not only in Nordic countries and Russia & CIS but also in Central Europe.”
He added: “Our productivity increased significantly as a result of implementing structural changes and an improving utilization of our capacities. Our strong winter tyre brand and solid distribution foothold in core markets together with a snowy winter in all Europe helped us to present good results and strong growth for the whole year.”
And he went on: “Going into 2011 our order book is all-time high and it provides us with a good opportunity to increase sales, again operating more selectively.
“We will also continue to launch new product lines, increase prices and improve mix to offset higher raw material costs. Low inventories in the distribution channel and our growing production capacity offer a good starting point for further profitable growth in 2011.”