The plunge of the ruble weakened revenue

Positive development on the Western markets

Nokian Tyres improved its market share in all the main markets. The company has the strongest brand, price position, and distribution in its core markets, the Nordic countries and Russia.

The year 2014

The company’s car tyre sales volumes followed the 2013 level, and the market share improved in all the main markets. In general, the Western markets are developing positively, and Nokian Tyres grew clearly in North America. In the East, the Russian and Ukrainian crisis, the strong decline in oil prices, and the depreciation of local currencies in relation to the global currencies caused financial difficulties in Russia and the CIS countries. The business environment was challenging, and the revenue of Nokian Tyres decreased 8.7% as a result of the devaluation of sales currencies, consumers’ shift towards cheaper segment B tyres in Russia, and price reductions due to lower raw material costs. The currencies’ negative impact on our revenue was nearly EUR 100 million.

The business of Vianor and Heavy Tyres developed positively. The company’s distribution network expanded as planned.

Profitability decreased but remained on a fairly good level, with the operating profit percentage at 22.2%. A 16.5% decrease in raw material costs provided a benefit of EUR 64 million compared to the previous year. Margins were further supported by decreased fixed costs and improved productivity.

Nokian Tyres had a strong cash flow of EUR 458.3 million. The company has a strong balance and it had no net liabilities at the end of the year. The dividend remained at €1.45 per share.

Nokian Tyres made significant improvements to its product offering by introducing five new SUV summer tyres and renewing its van tyre range. The company’s products had a record year in magazine tests with more than 50 wins in summer and winter tyre tests in the Nordic countries, Russia, and Central Europe. The high quality of the company’s products is generally recognized, which supports the positive development of its price position.

EUR million
Net sales 1,389.101,521.0-8.7
Operating profit308.7385.5*-19.9
% net sales 22.2
Profit before tax 261.2312.8-16.5
% of net sale18.820.6
Return on capital employed (ROI), % 19.221.8
Return on equity (ROE), % 16.013.0
Interest bearing net debt -164.6-56.4-191.9
% of net sales -11.8-0.9
Gross investments80.6125.6-35.8
% of net sales 5.88.3
Net cash flow from operating activities323.4317.61.8
Earnings/share, EUR 1.561.3912.9
Cash flow per share (CFPS), EUR 2.432.391.4
Shareholders equity per share, EUR 9.0710.45-13.1
Shareholders equity per share, EUR 16.013.0
Equity ratio, % 67.567.6
Personnel, average
during the year

*) Incl. bad debt provision of 14.3 M€