Nokian almost halved sales in Russia in I quarter
OREANDA-NEWS. Sales of Nokian Tyres reduced by 45.5% from €140.7 million to €76.8 million, and their share in the total sales of the concern decreased by 17.7% to 27.3%. The decline in the total proceeds was not that dramatic - by 9.8% from €311 million to €281.3 million. Volatility of the ruble and delayed start of winter tire sales in Russia had the most negative effect, president and CEO Ari Lehtoranta says. "However, when the market declined in Russia and the CIS countries, we were able to increase market share, sales and profitability in other markets", - he said.
According to Vedomosti newspaper, Nokian does not disclose data on production volume and sales in terms of numbers. It is only known that the output decreased by 12% in the first quarter, the sales of passenger tires in Russia reduced by 20% as compared to 3-5% decline in 2014.
80% of Nokian production volume are generated by the plant in Leningrad region, the remaining part comes from the enterprise in Finland. In the first quarter of 2015 Nokian exported 54% of tires, manufactured in Russia.
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