HAAKSBERGEN, the Netherlands—VMI's parent the TKH Group reported strong first-half performance for the Dutch-based tire and rubber machinery and systems manufacturer.
For its Smart Manufacturing Systems (SMS) division, TKH reported 21.0-percent year-on-year, organic growth in sales to $352.6 million—of which Tire Building Systems accounted for about 79 percent.
Earnings (EBITA) at the SMS unit increased by 74.9 percent year-on-year to $63 million in the first six months of 2024, added TKH's results statement issued Aug. 13.
Furthermore, the order book at SMS "remained very strong" at $690.4 million, while slightly below the record level of $704.6 million recorded Dec. 31, 2023.
Orders were mainly driven by tire building systems, which "continues to benefit from the effects of reshoring and the capex programs of tire manufacturers," the company noted.
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.
TKH cautioned, however, 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.
