NOKIA, Finland (Feb. 13, 2008) — Nokian Tyres P.L.C. announced strong earnings and sales growth in fiscal 2007, but sales dropped nearly 16 percent in North America in response to the weakening American dollar rate.
For the year, Nokian´s operating earnings rose 52.8 percent to $320.1 million while sales jumped 22.6 percent to $1.4 billion. Nearly two-thirds of the firm´s growth was from expanded business in Russia and Eastern Europe. The tire maker continues to invest in its own plant in Russia and is planning a joint venture facility in Kazakhstan.
Sales attributable to North America, on the other hand, fell 15.9 percent for the year, including a 20-percent drop in the fourth quarter, Nokian said.
Net income for the year jumped 57.4 percent to $231.1 million, for a 16.5-percent earnings ratio.
Passenger tire sales were up 29.6 percent to $945.5 million; heavy tires sales increased 11.9 percent to $138 million; truck tire sales rose 56.2 percent to $44.9 million; and the firm´s Vianor retailing unit reported 12.8-percent higher sales of $337.8 million.