Continental reported a sharp rise in second-quarter operating profit as improved tyre profitability and cost discipline offset a subdued global market, while the German group moved closer to completing its transformation into a pure-play tyre manufacturer.

The company posted consolidated sales of EURO 4.4 billion for the three months to 30 June, down 9.1 percent from a year earlier, largely reflecting the sale of its Original Equipment Solutions (OESL) business in February. On an organic basis, sales slipped 0.3 percent.

Adjusted earnings before interest and tax (EBIT) rose 35.1 percent to EURO 570 million, lifting the adjusted EBIT margin to 12.9 percent from 9.6 percent a year earlier. Adjusted free cash flow improved to EURO 216 million from negative EURO 46 million in the corresponding period of 2025. Net income, however, fell 45.9 percent to EURO 274 million, mainly because of the spin-off of Aumovio.

In early July, Continental signed an agreement to sell its ContiTech division to Lone Star Funds, marking what it described as the final stage of its strategic realignment. As a result, ContiTech will now be treated as a discontinued operation and excluded from the group's consolidated outlook.

"We continued our positive momentum. In the Tires group sector, we achieved a good earnings margin in the second quarter, exceeding our outlook for 2026. This puts us on track to meet our expectations for the year. In early July, we also signed an agreement to sell ContiTech. Now, we are in the final phase of our realignment as a pure-play tyre manufacturer," said Chief Executive Christian Kötz.

Chief Financial Officer Roland Welzbacher said improved profitability was driven by a greater share of tyres measuring 18 inches and above, lower impacts from exchange rates and tariffs, favourable raw material prices and strict cost discipline. He added that the company expected raw material costs to rise significantly during the second half of the year and had already taken measures to address the increase.

"We significantly increased our profitability and free cash flow. The main drivers for tyres were a higher share of tires measuring 18 inches and above, lower impacts from exchange rates and tariffs, and positive effects from raw-material prices. For the second half of the year, however, we expect raw-material costs to increase substantially and have already taken steps to address this," Welzbacher said.

Continental said market conditions remained challenging during the quarter. The European replacement tyre market for passenger cars and light commercial vehicles grew by 3 percent, supported by imports, while the North American market declined by 1 percent. Global vehicle production also fell by about 1 percent year on year.

The tyres division generated sales of EURO 3.3 billion, broadly unchanged from a year earlier, with organic sales rising 0.3 percent. Its adjusted EBIT margin increased to 15.3 percent from 12.1 percent, supported by a stronger mix of premium tyres, favourable raw material prices and lower impacts from exchange rates and tariffs.

During the quarter, Continental announced several investments aimed at strengthening its tyre operations. These included a company-owned wind farm at its Korbach plant in Germany, a new automated warehouse in Mount Vernon, Illinois, and expanded tyre production capacity at its Rayong plant in Thailand.

Looking ahead, Continental expects continuing operations to generate sales of EURO 13.2 billion to EURO 14.2 billion in 2026, with an adjusted EBIT margin of 12.0 to 13.5 percent.

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Michelin has issued guidance for motorcyclists as autumn brings cooler starts and slicker roads, with the tyre maker urging riders to adapt both their machines and their habits to the shifting season. Sabrina Sabel, a product technician for motorcycle tyres at Michelin and a seasoned racing rider, outlined measures covering pressure checks, compound behaviour, tread design and off-season storage.

Falling temperatures and unpredictable surfaces alter how a bike responds, making the tyre’s rubber blend and groove pattern central to preserving grip and stability. According to Michelin, riders should verify tyre pressures on a regular basis and adhere strictly to the figures supplied by the motorcycle manufacturer, particularly before any extended journey.

Sabrina Sabel, Product Technician for motorcycle tyres at Michelin

Modern touring rubber is generally formulated to deliver dependable grip from the outset, so deliberately warming tyres is unnecessary for most riders in ordinary autumn conditions. Compounds rich in silica help a tyre generate traction quickly when temperatures drop while also aiding performance on wet asphalt. Sabel noted that she rides gently for the opening kilometres, letting the tyres warm evenly through smooth braking and acceleration with the bike held upright, avoiding undue stress on the rubber.

Cold grip refers to a tyre’s capacity to hold the road at lower temperatures, a quality shaped by its compound, which may combine silica with other ingredients to balance traction, longevity and wet-weather ability. Touring tyres typically cover a wide operating range, whereas sport tyres favour higher-temperature performance, meaning riders should consider their fitted rubber and temper their style accordingly on chilly days.

Wet conditions make tread design vital for keeping rubber in contact with the road. Grooves and channels clear water from the contact patch, so adequate tread depth matters as seasons shift. Michelin’s Road 6 employs Water-Evergrip Technology, whose progressively opening sipes maintain water evacuation as the tyre wears, supporting consistent wet performance. The M+S marking indicates mud and snow suitability, relevant for adventure riders in mountainous regions; the Anakee Adventure 2’s pattern displaces mud and water while aiding braking and cornering feedback. The best choice depends on the bike, riding style, routes and personal preference.

For those storing a motorcycle, tyre care continues after the riding season ends. Michelin advises checking pressures before storage, periodically shifting the bike to prevent prolonged pressure on one section, and keeping tyres in a cool, dry, well-ventilated place away from sunlight, UV light, heat and chemicals such as petrol and solvents. For extended storage, manufacturer guidance on pressures and positioning should always be followed.

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ARLANXEO’s Changzhou EPDM facility in China has reached a cumulative production milestone of surpassing the one-million-tonne mark. The plant began operations in 2015 with a nameplate capacity of 160,000 metric tonnes per year and has steadily enhanced its manufacturing capabilities to serve evolving demand in the automotive, construction, infrastructure and industrial sectors.

The achievement stems from employee dedication and expertise, alongside the trust of customers and partners, and underscores ARLANXEO’s commitment to supplying high-quality Keltan EPDM solutions throughout China, Asia and globally. The company expressed appreciation to all contributors and said it looks forward to building on this foundation to create further value for customers and partners in the years ahead.

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Hankook Tire has signed on as an official partner of the Gulf Cup 2026, set to be held in Jeddah, Saudi Arabia, from 23 September to 6 October. The company serves as the tournament's exclusive official tyre brand partner, marking an expansion of its Middle East sports involvement from clubs and leagues to a national-team competition.

The 27th edition of the tournament is organised by the Arab Gulf Cup Football Federation (AGCFF) and features eight national teams from Saudi Arabia, United Arab Emirates, Qatar, Kuwait, Bahrain, Oman, Iraq and Yemen. Fifteen matches will take place across two Jeddah venues: King Abdullah Sports City Stadium and Prince Abdullah Al Faisal Stadium.

During the event, Hankook Tire will promote its unified global brand through media backdrops, LED advertising and giant screens before, during and after matches. The company will also pursue fan engagement via social media initiatives and interactive promotional activities, broadening its brand touchpoints across the GCC region.

Jongwoo Kim, Head of Hankook Tire & Technology's Middle East and Asia Division, said, "Our partnership with the Gulf Cup will provide an opportunity to broaden Hankook Tire's brand touchpoints across the GCC, expanding our sports marketing from club- and league-level partnerships to a tournament featuring national teams. Through sports marketing that resonates with local fans, we aim to strengthen Hankook Tire's brand presence across the Middle East."

Jassim Sultan Al Rumaihi, Secretary-General, Gulf Football Federation, said, "This partnership reflects mutual trust and a shared vision to further develop the Gulf Cup and strengthen its presence among fans and across the media landscape. It also demonstrates the Gulf Football Federation's commitment to attracting leading brands with an influential presence and an established position in the region, contributing to expanding the strategic partnership horizons of the tournament and enhancing its value across various levels.

“We are delighted to welcome Hankook Tire & Technology to the partnership family of 'Khaleeji Al Diyar Al Arabiya 27'. The company represents a globally recognised brand with an international presence and extensive experience in supporting sports and major events. We view this partnership as a valuable addition to the tournament's journey and as a strong contribution to our efforts to deliver an exceptional edition that reflects the stature and rich heritage of the Gulf Cup while further enhancing its broad commercial and fan appeal."

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Lion Elastomers has named Intertex World Resources, Inc. as the sole distributor of its Royalene EPDM, SBR and NBR in North America, effective 15 September 2026. These products are manufactured at Lion's Geismar, Louisiana, and Port Neches, Texas, facilities. Following a thorough distribution analysis, Lion chose Intertex based on the company's decades of rubber sales expertise, enduring customer relationships and coverage spanning United States, Mexico and Canada.

George Panagopoulos, Vice President of Sales & Marketing, Lion Elastomers, said, "Intertex knows the rubber market well, and their customers stay with them. Both companies want to win in the marketplace by delivering real value to customers. That is what this partnership is built to do."

Stan Rybalov, President & CEO, Intertex World Resources, Inc., said, “We are excited to partner with Lion Elastomers as the exclusive distributor of Royalene EPDM, SBR and NBR products throughout North America. Lion’s strong portfolio of domestically manufactured rubber products, combined with Intertex’s extensive market knowledge, customer relationships and distribution capabilities, creates a tremendous opportunity to bring additional value to our customers. We look forward to offering a reliable domestic source of EPDM, SBR and NBR, complemented by Intertex’s existing portfolio of carbon black, process oils and other rubber products.

“Our goal has always been to make it easier for our customers to source the materials they need while providing dependable supply, competitive value and exceptional service. This partnership with Lion Elastomers strengthens that commitment and gives our customers access to an even broader range of high-quality rubber products across the US, Mexico and Canada.”

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