By Denna Bowman
High demand and strong sales has led to double-digit sales and profit growth for Nokian tyres for the first half of the year.
The Finnish tyres manufacturer reported that its operating earnings soared by 53.3 percent in the quarter ended June 30 as sales rose 30.1 percent.
Operating income rose to $134.2 million on sales of $351 million. Net profit was $106.8 million, or nearly 22 percent of sales.
For the first half, operating income doubled to $238.3 million and sales climbed 41.4 percent to $903.6 million. Net income was up 88.1 percent to $196.6 million.
The strong first half, coupled with a healthy order book, expanding distribution channel, improved cost structure, etc., “will give Nokian Tyres a good chance to strengthen its market leadership in the core markets and to continue strong profitable growth in 2011,” the company said.
Kim Gran, Nokian President and CEO, said: “A flying start for 2011 was followed in Q2 by further strong growth in our core business. The first semester was a success for us as we beat all previous (first half) results.
“Sales in our core markets grew significantly. The launch of our new summer tyres was a success and we gained market share on all key markets, especially in Russia and the Nordic countries.”