TKH Group reports record Q1 performance

HAAKSBERGEN, The Netherlands—TKH Group N.V., the parent of tire and rubber machinery maker VMI, is boasting record performance in the first quarter of 2022.

The company reported a 31.3-percent year-on-year increase in first quarter sales to $464.6 million (€436.7 million) and record earnings (EBITA) of $62.2 million, up from $33.9 million a year ago.

VMI credited the performance to an especially strong recovery in the tire building systems business within the group's "smart manufacturing systems" division, the company said in an April 25 trading update.

The manufacturing systems division recorded a 61.2-percent 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," TKH CEO Alexander van der Lof 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 program 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.