Nokian Tyres plc Half Year Financial Report January−June 2018, August 8, 2018, 8:00 a.m.
This release is a summary of Nokian Tyres’ Half Year Financial Report January−June 2018. The complete report is attached to this release. It is also available on the company website at www.nokiantyres.com/company/investors/.
April–June 2018
- Net sales increased by 9.2% to EUR 429.1 million (393.0 in 4–6/2017). With comparable currencies,net sales increased by 15.1%.
- Operating profit increased to EUR 108.0 million (94.1).
- Profit for the period was EUR 87.5 million (71.1).
- Earnings per share rose to EUR 0.63 (0.52).
- Cash flow from operating activities was EUR 169.0 million (-5.9). In relation to the tax disputes concerning the years 2007−2011, the Finnish Tax Administration returned the previously paid back taxes and interest of EUR 148 million to the company in June 2018.
- Guidance unchanged.
January–June 2018
- Net sales increased by 6.4% to EUR 765.2 million (718.9 in 1–6/2017). With comparable currencies, net sales increased by 12.5%.
- Operating profit increased to EUR 169.3 million (153.0).
- Profit for the period was EUR 134.1 million (116.4).
- Earnings per share rose to EUR 0.97 (0.86).
- Cash flow from operating activities was EUR 150.6 million (-46.0). In relation to the tax disputes concerning the years 2007−2011, the Finnish Tax Administration returned the previously paid back taxes and interest of EUR 148 million to the company in June 2018.
Guidance (unchanged)
In 2018, with the current exchange rates, net sales and operating profit are expected to grow compared with 2017.
Hille Korhonen, President and CEO:
“We had a good first half of the year with growth in all our main markets. With comparable currencies, net sales increased by 12.5%. Operating profit increased compared to the first half of 2017, driven by the improved performance of Passenger Car Tyres and Vianor. In Heavy Tyres, especially sales of agricultural tyres and forestry tyres performed well.
In order to support our growth, we have decided to increase our production capacity for passenger car tyres in Finland by approximately 1 million tyres by starting to run the factory six days a week. With this capacity increase, more than 80 new people will be hired for passenger car tyre production.
In line with our strategic target to grow in Central Europe and North America, we have two major investments ongoing. We have started the project to build a testing center in Spain for the purposes of developing and testing new summer and all season tyres in particular. The construction work at our new US factory in Dayton, Tennessee, is also proceeding as planned.
I am particularly proud to announce that in the area of sustainability, during April−June 2018, we joined the Science Based Targets initiative and we are committed to setting climate targets based on current research. The new climate goals will be linked to our value chain as well as the environmental impacts of our products.”
Key figures, EUR million
| 4–6 /18 |
4–6 /17 |
Change % |
CC* Change % |
1–6/18 | 1–6/17 | Change % |
CC* Change % |
2017 | |
| Net sales | 429.1 | 393.0 | 9.2 | 15.1 | 765.2 | 718.9 | 6.4 | 12.5 | 1,572.5 |
| Operating profit | 108.0 | 94.1 | 169.3 | 153.0 | 365.4 | ||||
| Operating profit % | 25.2 | 24.0 | 22.1 | 21.3 | 23.2 | ||||
| Profit before tax | 105.4 | 87.1 | 165.4 | 146.0 | 332.4 | ||||
| Profit for the period | 87.5 | 71.1 | 134.1 | 116.4 | 221.4 | ||||
| Earnings per share, EUR | 0.63 | 0.52 | 0.97 | 0.86 | 1.63 | ||||
| Equity ratio, % | 70.5 | 76.4 | 78.2 | ||||||
| Cash flow from operating activities | 169.0 | -5.9 | 150.6 | -46.0 | 234.1 | ||||
| Gearing, % | -7.2 | -2.6 | -14.2 | ||||||
| Interest-bearing net debt | -99.6 | -36.0 | -208.3 | ||||||
| Capital expenditure | 47.4 | 42.6 | 64.9 | 60.0 | 134.9 |
* Comparable currencies
BUSINESS UNIT REVIEWS
Passenger Car Tyres
| 4–6 /18 |
4–6 /17 |
Change % |
1–6/18 | 1–6/17 | Change % |
CC Change % |
2017 | |
| Net sales, M€ | 309.0 | 276.4 | 11.8 | 568.0 | 524.4 | 8.3 | 15.5 | 1,138.8 |
| Operating profit, M€ |
94.5 | 84.8 | 168.5 | 160.7 | 359.9 | |||
| Operating profit, % |
30.6 | 30.7 | 29.7 | 30.6 | 31.6 |
Heavy Tyres
| 4–6 /18 |
4–6 /17 |
Change % |
1–6/18 | 1–6/17 | Change % |
CC Change % |
2017 | |
| Net sales, M€ | 46.5 | 44.0 | 5.8 | 89.6 | 83.8 | 7.0 | 9.3 | 172.3 |
| Operating profit, M€ |
4.9 | 9.1 | 13.2 | 14.8 | 32.2 | |||
| Operating profit, % |
10.5 | 20.8 | 14.7 | 17.7 | 18.7 |
Vianor, own operations
| 4–6 /18 |
4–6 /17 |
Change % |
1–6/18 | 1–6/17 | Change % |
CC Change % |
2017 | |
| Net sales, M€ | 93.0 | 89.8 | 3.6 | 146.2 | 146.1 | 0.1 | 3.4 | 339.4 |
| Operating profit, M€ |
10.0 | 4.0 | -4.7 | -11.8 | -5.8 | |||
| Operating profit, % |
10.7 | 4.5 | -3.2 | -8.1 | -1.7 | |||
| Own service centers, pcs at period end |
193 | 205 | 194 |
CONFERENCE CALL
A conference call for investors, analysts and media will be held at 10:00 a.m. Finnish time. In the call, Nokian Tyres’ President and CEO Hille Korhonen will present the financial results.
To participate, please dial in 5-10 minutes before the beginning of the event:
FI: +358981710495
SE: +46856642702
UK: +442031940552
US: +18557161597
The call can also be listened live via www.nokiantyres.com/resultinfo-Q2-2018
A recording of the conference call will be available on the company’s website later.
FINANCIAL REPORTING 2018
Interim Report January−September 2018: October 31, 2018
Releases and company information are be available at www.nokiantyres.com/company/investors/.
SAVE THE DATE / CAPITAL MARKETS DAY
Date: November 13, 2018
Location: Helsinki, Finland
Further details will be provided in due course, including information and details on registration.
Nokian Tyres plc
Päivi Antola, VP, IR and Communications
Further information:
Hille Korhonen, President and CEO, tel: +358 10 401 7733
Teemu Kangas-Kärki, CFO, tel: +358 10 401 7481
Päivi Antola, VP, IR and Communications, tel: +358 10 401 7327
Distribution: Nasdaq Helsinki, media, www.nokiantyres.com
Attachment: Nokian Tyres’ Half Year Financial Report January−June 2018
