HAAKSBERGEN, Netherlands—TKH Group N.V., parent company of tire-building machinery maker VMI, has reported a drop in its second quarter results due to a continuing decline in orders from China.
“The situation in China did not improve in the second quarter due to the postponement of a number of expected orders, also from the big five tire manufacturers,” said Alexander van der Lof, CEO of Haaksbergen-based TKH.
However, according to van der Lof, the outlook for the order intake in the second half of the year is better, due to the potential for contract-wins around a number of newly announced, major projects.
“In the second quarter, we were able to agree on a framework agreement with a major tire manufacturer. We have further adjusted our production capacity upwards with a view to the expected higher activity levels in the coming quarters,” the CEO reported.
TKH Group supplies systems and networks for the provision of information, telecoms, electro-technical engineering and industrial production.
VMI is part of the group's Industrial Solutions division, which supplies specialty cable, plug-and-play cable systems for applications in the robotics, medical and machine building industries.
TKH posted group sales of $375.6 million for the first half of 2016, $329.4 million of which came from the Industrial Solutions division.