NOKIA, Finland (May 10, 2010)—Nokian Tyres P.L.C. rebounded into the black in the quarter ended March 31 on 18.1-percent higher sales.
Nokian reported operating profits of $29.2 million and net income of $27.8 million on sales of $254.6 million. Sales were buoyed by a prolonged winter season and a recovery of preseason sales in Russia, where the firm sees an improving business environment.
Nokian sees signs of slow recovery in its key markets, but management cautioned that “serious clouds shadow the European economy and make future recovery uncertain.” In particular, Nokian anticipates raw materials costs will increase 10 to 12 percent over 2009.
The firm's sales in Russia grew 42.7 percent in the period, while sales in the Nordic countries were up 20.7 percent. Nokian said it expects these regions to represent larger shares of its business and that this growth will affect sales mix and prices positively.
Business in North America—which represents 10 percent of global sales—grew by 1 percent, Nokian said.