VMI parent posts strong first half for tire building systems unit

Haaksbergen, The Netherlands - VMI’s parent the TKH Group has reported a strong first half performance for the Dutch-based tire & rubber machinery and systems manufacturer.

For its ‘smart manufacturing systems’ (SMS) division, TKH reported  21.0% year-on-year, organic growth in sales* to €315.9 million -  of which ‘tire building systems’ accounted for about 79%. 

Earnings (EBITA) at the SMS unit increased by 74.9% year-on-year to €56.4 million in the first six months of 2024, added TKH’s  results statement issued 13 Aug.

Furthermore, the order book at SMS “remained very strong” at €618.5 million, while slightly below the record level of €631.3 million recorded at 31 Dec 2023.

Orders, noted TKH, were mainly driven by tire building systems, which “continues to benefit from the effects of reshoring and the capex programs of tire manufacturers.” 

According to the group, 'tire building systems’ benefitted from a “high order book in both passenger and truck tires” during the first half.. 

Demand, it said, is being driven by investments in the production of more sustainable tires, the rise of electric vehicles, and the need for more automation.

An easing of supply-chain effects “resulted in a catch-up effect of deliveries [which] along with efficiency improvements, led to a strong operational performance,” TKH added. 

However, it cautioned, that the delivery catch-up effect will “subside” in the second half of 2024, leading to lower sales and earnings levels than those seen in the first six months.

*Adjusted for currency effects