Sales, earnings dip at TKH manufacturing systems unit

Haaksbergen, The Netherlands – TKH has reported year-on-year declines in sales and earnings at its ‘smart manufacturing systems’ division, which includes tire-building systems major VMI.

First-half turnover at ‘smart manufacturing’ fell 9.2% year-on-year to €260.9 million, while earnings (adjusted EBITA excluding one-off income and expenses) came in 19.6% lower at €45.5 million.

The business reversals had been anticipated due to a lower orderbook and a strong comparison base, according to the TKH results statement issued 12 Aug.

“The performance of ‘smart manufacturing systems’ was lower, in line with expectations, due to the comparison with a very strong H1 2024, which benefitted from catch-up effects,” said TKH chief executive Alexander van der Lof.

For the second half, the Dutch group expects sales and earnings at ‘smart manufacturing systems’ to be lower than in the first six months of 2025, due to a lower orderbook.

“The order intake during H1 2025 was impacted by uncertainties in trade tariffs and continued lower investments from the tier 1s,” the group stated.

On a more positive note, “expected order intake for H2 2025 is promising," TKH added in its first-half report.

The group further noted that a first delivery of VMI's UNIXX tire system (related ERJ report) was expected in the third quarter of 2025.