HELSINKI, Finland (Feb. 13, 2001) — Nokian Tyres P.L.C., suffering the effects of rising raw materials prices and acquisition-related integration costs, reported a 23-percent drop in net earnings last year, while sales rose 23.5 percent.
For 2001, the company expects sales to grow 10 percent — vs. 1 to 2 percent market growth — while also improving earnings an undisclosed amount. Net sales for 2000 rose to $369 million, with revenues from tire chain acquisitions contributing more than half the increase, the company said.
Net earnings fell to $18.2 million, reducing the profitability ratio to 4.9 percent. Nokian anticipates tough market conditions in 2001 — particularly in the first quarter — including additional raw materials price increases of 10 percent or more.
On the other hand, Nokian now has secure off-take agreements with Groupe Michelin for large agricultural and medium truck tires, and it will benefit from expanded mixing operations as the year progresses.