Nokian Tyres is looking to double its sales in North America
Nokian Tyres P.L.C. is looking to double its sales in North America in the coming five years, CEO and President Hille Korhonen said in Nokian’s third-quarter financial results presentation.
The Finnish tire maker, which has a plant under construction in Dayton, Tenn., also expects to expand its sales in central Europe by 50 percent as well as maintain its market leader positions in the Nordic countries and Russia, Ms. Korhonen said.
The U.S. factory and a tech center/test track being built in Spain will play a key role in Nokian’s “next stage of growth,” she added.
Nokian’s sales in North America were up 7.5 percent in the quarter and 10.7 percent for the first nine months of fiscal 2018, putting the firm on target for roughly $210 million in revenue there for the full year.
North America showed the most growth in the period, Nokian’s figures show, pushing the region’s share of the firm’s global revenue to 12.1 percent.
To support further growth, Nokian stated that it was investing in sales and marketing in central Europe and North America and “building scalable business platforms.”
For the quarter months ended Sept. 30, Nokian’s operating income fell 4.3 percent to $99.9 million on the negative effects of currency value swings, but operating income for the nine-month period was up slightly to $297 million.
Revenue in the quarter slipped 1.7 percent to $415 million but was 3.7 percent ahead for the comparative nine-month periods at $1.3 billion.
For the full year, Nokian said it anticipates reporting sales and operating income on par with or slightly ahead of fiscal 2017 due to the continued negative currency impact.