NOKIA, Finland—Nokian Tyres P.L.C. reported strong growth in both sales and profits over the three months and nine months ended Sept. 30, helped by higher volumes and price adjustments.
Third-quarter operating profit was up 39.8 percent at $114.3 million on 26.8 percent higher sales of $523 million, Nokian reported. Net income was $81.5 million.
Over the first nine months of the year, operating profit grew 115.3 percent to $279.2 million, on 33.4 percent higher sales of $1.42 billion. Net income improved by a factor of five to $199.4 million.
Nokian President and CEO Jukka Moisio linked the company's "significant" profit growth to "early timing of deliveries" and higher sales volume.
As anticipated, increased raw-materials and logistics costs, including the shortage of container capacity, were visible in the third quarter, he added.
"We have taken mitigating actions, including price increases, to reduce the impact of cost inflation," Moisio said. "We have announced further prices increases in a wide range of markets and products, and we will continue to carefully control costs, as cost inflation is expected to continue."
To meet demand, Nokian operated its factory in Vsevolozhsk, Russia, and heavy tires factory in Finland at full capacity during the third quarter.