VMI parent group reports strong tire segment performance

Haaksbergen, The Netherlands – TKH Group NV, the Dutch parent group of VMI, has reported a "strong" third quarter for the tire systems & machinery maker.

Epe, Netherlands-based VMI operates within TKH's ‘smart manufacturing systems’ (SMS) segment, for which tire-building systems represent about 70% of the turnover.

For the third quarter, SMS recorded a 28.0% year-on-year increase in turnover, improved return-on-sales compared to the first half of 2023, and a high order-intake.

Within this, the 'tire building' unit "showed strong turnover growth, driven by the easing of component shortages and a continued strong order book," TKH reported.

The gains also reflected "increased added value and the reduction of operational inefficiencies at tire building, the Dutch group added in a 14 Nov trading update. 

“Smart Manufacturing systems showed an excellent improvement in results as supply-chain constraints eased,” TKH chief executive Alexander van der Lof commented.

TKH now expects both turnover and earnings at the SMS segment to grow in the second half compared to the first half of the year.