TKH Group reports lower sales, income; organic decline for tyre machinery sales
Organic turnover earned through manufacturing systems produced by the TKH Group’s Industrial Solutions business area, which includes equipment made by VMI Holland BV, contracted 16.2 per cent in the first half of 2016. This decline was due in part to a reduced order intake in 2015 for a range of manufacturing systems equipment, including machinery for the production of car and truck tyres as well as machine operating systems, can washers, test equipment and product handling systems for the medical industry. The TKH Group also states that organic turnover was lower due to the effect of a relatively large share in engineering activities prior to production as a consequence of newly-developed technology and “continued breakthroughs amongst the top five tyre manufacturers.” The Group also noted that a “reluctance to invest in China” was having a “negative impact” on the company’s order intake.
Manufacturing systems accounted for a 25.6 per cent turnover share within the Industrial Solutions business; total turnover for TKH’s Industrial Solutions business declined 9.3 per cent year-on-year in the first half of 2016 to €292.1 million. EBITDA sank 23.2 per cent to €32.8 million. Turnover for the TKH Group as a whole reduced 5.8 per cent in the first half of the year to €650.1 million, while EBITA was 12.3 per cent lower at €41.0 million and net profit attributable to shareholders, before amortisation and one-off income and expenses, was down 12.8 per cent to €41.0 million.