Continental has reported an 8.2 per cent increase in consolidated sales at EUR9.3 billion in the first quarter of this year compared to sales of €8.6 billion.

Adjusted EBIT fell to EUR 439 million in the first quarter, as against EUR 728 million for the same period in the previous year.

The company said in a release that it reported strong tyre business despite an increasingly turbulent market environment. It said many external factors, such as the war against Ukraine, the coronavirus pandemic, electronic component shortages and cost increases in procurement and logistics, presented major challenges.

Nikolai Setzer, CEO, Continental, said, “The past quarter was overshadowed by the war against Ukraine and its drastic effects on already high energy prices and strained logistics chains and commodity markets. In addition, measures to contain the coronavirus pandemic, particularly in China, had an adverse effect on economic development. In view of the multiple challenges, we took various steps to minimise the impact on earnings.”

He added, “Price increases in procurement and logistics affected us significantly in the first quarter. Despite this considerable headwind, we achieved a good result in the tire business. For Automotive, we are confident that the measures taken will result in improved earnings over the course of the year.” 

Continental said it took immediate action to address the numerous challenges and effectively maintain production and supply chains. It further diversified raw material sources at an early stage, building up security stocks and reorganising its value chain in the electronics sector.

Continental said it was also working with its customers to share the burden of increased costs.

In the first quarter of 2022, Continental generated a net income of EUR 245 million compared to EUR 448 million for continuing and discontinued operations. Adjusted free cash flow was -EUR 174 million, as against EUR 646 million for continuing and discontinued operations. 

Katja Dürrfeld, CFO, Continental, said, “Adjusted free cash flow in the first quarter of this year was negative due primarily to higher procurement costs and inventory buildup. For the year as a whole, we anticipate an adjusted free cash flow of around EUR 0.6 billion to EUR 1.0 billion.”  

The higher inventories are the result of increased security stocks for raw materials and semi-finished products and the seasonal buildup in the tyre sector, it said. 

In the first three months of the year, global automotive production was significantly lower than in the first quarter of the previous year. The market for passenger cars and light commercial vehicles in Europe fell particularly sharply (3.8 million units, -19.1 per cent). North America also recorded a slightly weaker start to the year compared with the previous year’s quarter (3.6 million units, -1.8 per cent). In China, the production of passenger cars and light commercial vehicles was up year-on-year (6.1 million units, +6.1 per cent). According to preliminary figures, global production of passenger cars and light commercial vehicles fell by 4.5 per cent compared with the first quarter of 2021 to a total of 19.7 million units (Q1 2021: 20.7 million units).

The weak automotive production in conjunction with increasing procurement and logistics costs impacted the automotive group sector in particular. Its sales increased by 3.2 percent to EUR 4.2 billion. After adjusting for exchange-rate effects and changes in the scope of consolidation, it posted organic sales growth of -1.2 percent. The automotive group sector outperformed the market, with global automotive production falling by 4.5 percent in the first quarter of this year, the company claimed. Its adjusted EBIT margin was -3.9 percent. 

The tyres group sector achieved a good result, recording increased sales volumes in the car tyres and commercial-vehicle tyres replacement business compared with the previous year.

With sales of EUR 3.3 billion (Q1 2021: EUR 2.7 billion, +20.1 per cent), it achieved an adjusted EBIT margin of 17.1 percent (Q1 2021: 16.6 percent).  

It said market developments will continue to be characterised by high volatility in the coming months. 

After a production output of 77.1 million passenger cars and light commercial vehicles last year, Continental expects an increase of between 4 and 6 per cent for the year as a whole (previously: 6 to 9 per cent).

Negative effects from cost inflation for key inputs, especially for oil-based raw materials as well as for energy and logistics in tyres and ContiTech, continue to become significantly more material. 

Continental has also adjusted its outlook for the year as a whole, as reported on April 21, 2022. Consolidated sales are now expected to be around EUR 38.3 billion to EUR 40.1 billion (previously: around EUR 38 billion to EUR 40 billion), and the adjusted EBIT margin is expected to be around 4.7 to 5.7 per cent (previously: around 5.5 to 6.5 per cent). 

For the automotive group sector, Continental expects sales of around EUR 17.8 billion to EUR 18.8 billion (previously: around EUR 18 billion to EUR 19 billion) and an adjusted EBIT margin in the range of around -0.5 to 1 percent (previously: around 0 to 1.5 percent). This still includes higher procurement and logistics expenses of around €1 billion as well as additional expenses for research and development of around EUR 100 million in the Autonomous Mobility business area. For the tyres group sector, Continental expects sales of around EUR 13.8 billion to EUR 14.2 billion (previously: around EUR 13.3 billion to EUR 13.8 billion) and an adjusted EBIT margin of around 12.0 to 13.0 percent (previously: around 13.5 to 14.5 percent). (TT)

As part of a strategic effort to increase its presence in the region's premium original equipment (OE) market, Kumho Tire has confirmed its plans to establish its first tyre production facility in Europe by 2027.

The company has shortlisted Poland, Serbia and Portugal as possible locations for the plant, which is projected to need an investment of more than KRW1 trillion (USD 705 million). The decision is closely linked to Kumho’s ambition to strengthen its partnerships with European automakers and was revealed by Kumho Tire CEO during the South Korean premiere of Kumho's new Ecsta Sport tyre line.

Kumho has recently secured OE supply contracts with major brands such as Mercedes-Benz, BMW and Volkswagen Group. At the moment, Kumho runs eight tyre production plants in China, Vietnam, South Korea and the US. Its capacity to compete in the premium OE market, however, has come to be perceived as being constrained by the absence of a European production base. Through the benefits of local production, the new facility will improve response to European client requests, save freight costs and shorten delivery times, all of which will strengthen the company's partnerships.

Sentury Tire USA has opened pre-enrolment for its two associate dealer programmes (ADPs), the Delinte HYPERDRIVE Associate Dealer Program and the Landsail Elyte Associate Dealer Program, underscoring the company’s commitment to rewarding dedication and partnership to the Landsail and Delinte brands.

The ADPs, which are customised for each brand and intended to encourage dealers, will formally start on 1 June 2025. Both programmes give dealers access to special benefits, incentives and strong tools to help them expand their businesses. This involves dependable customer service, effective marketing and worthwhile financial incentives to promote dealers' success at every stage.

Beginning in Q3, dealers may earn up to USD three per tyre through the Delinte HYPERDRIVE Associate Dealer Program. Dealers can receive retroactive benefits for purchases completed in Q2 if they register before 1 June. The awards are available for all Delinte PTR, LTR and the new DV3 LMD AS last-mile delivery tyres. For all Landsail PTR and LTR tyres, independent dealers that sign up for the Landsail Elyte Associate Dealer Program can also earn up to USD three per tyre. For customers who sign up by June 1, the new LMD 100 AS last-mile delivery is also eligible for the benefits and will get the same early bird incentive for Q2 2025.

No initial order is necessary. Dealers only need to register to begin making money. According to the monthly programme rewards structure, 48 tyre purchases each month are eligible for a reward of USD one per tyre, 120 tyres are eligible for a reward of USD two per tyre and 240 or more tyres are eligible for a reward of USD three per tyre.

ENSO, a London-based tyre manufacturer engaged in the production of sustainable tyres specially designed for electric vehicles (EVs), has launched its new ENSO Premium range of EV-specific ultra-high-performance (UHP) tyres aimed at drivers of high-performance EVs such as the Tesla Model 3 and Model Y.

Specifically designed for electric passenger vehicles, the ENSO Premium range comes with A/A EU-label ratings for both energy efficiency and wet grip. The tyres are designed to provide safety, increased range and a reduced total cost of ownership. Conventional tyre designs frequently fall short of the special performance needs of electric vehicles, which include greater vehicle weight, regenerative braking and higher torque loads. By lowering tyre wear and rolling resistance, ENSO Premium takes care of these issues.

The company is an authorised provider of replacement tyres for LEVC's electric taxis and has partnered with Uber to install its tyres in high-mileage metropolitan areas. The company now plans to grow throughout Europe and North America, and with ENSO Premium, it is now offering its services to individual EV owners throughout the United Kingdom. According to ENSO, the range offers advantages including longer tyre life and fewer replacements, lower energy usage, fewer charging stops and lower CO₂ emissions and tyre particle pollution.

Gunnlaugur Erlendsson, CEO and Co-Founder, ENSO, said, “We’re plugging a long-standing gap in the tyre market by offering EV drivers a purpose-built, affordable, premium EV tyre alternative that matches the innovation of their EV.”

Kraton Corporation, a leading global sustainable producer of specialty polymers and high-value bio-based products derived from pine wood pulping co-products, has announced a general price hike in North America for its SBS, SIS and HSBC product lines with effect from 1 May 2025.

Following a careful analysis of the effects of recently implemented tariffs, related cost increases and a conclusion that the company cannot independently absorb these repercussions, Kraton is adopting these pricing hikes, according to a company statement. The company further said that it will keep an eye on the scene and reassess these measures promptly in the event that conditions and US import tariffs alter.