VMI parent sees "strong recovery" in tire building systems business

Haaksbergen, The Netherlands - TKH Group NV, the parent of tire & rubber machinery maker VMI, has reported a 31.3% year-on-year increase in first quarter sales to €436.7 million and record earnings (EBITA) of €58.5 million, up from €31.9 million a year ago.

The performance was helped by an especially strong recovery in the tire building systems business within the group's ‘smart manufacturing systems’ division, said a 25 April trading update from TKH.

The manufacturing systems division recorded a 61.2% increase in turnover compared to a year ago and an increase in tire building machinery output in response to "record order intake" from 2021.

“Order intake for both passenger [car] and truck tire systems remained at a high level in the first quarter of 2022,” according to the Dutch group.

"Demand for our technologies remains high, resulting in a further increase of our order book on March 31, 2022," Alexander van der Lof, CEO of TKH said of the group’s overall performance.

"Although some activities may experience more effects [from Russia’s war in Ukraine and lockdowns in China] in the period to come, we expect it to be temporary and balance out throughout the year,” he added.

In March, TKH announced plans for an expansion of its production capacity in response to increased demand in the tire manufacturing sector, among other markets.

Due to start In the second quarter of 2022, the programme will involve additional capital investments spread over the remainder of 2022 and 2023:

“With our increased focus and the investments planned, we can take full advantage of the further market growth we expect for our technologies and drive economies of scale," said van der Lof.