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)

Apollo Tyres Ltd has secured a one-season shirt-sleeve sponsorship agreement with AS Monaco, one of French football's most successful clubs, to increase awareness for its premium Vredestein brand.

This partnership will leverage Ligue 1's ranking as the fifth most watched football league in the world to raise awareness of Vredestein's award-winning products among a large audience in France and abroad. On November 22, AS Monaco's home league game against Brest will have the new sleeve branding for the first time. The Vredestein brand will be heavily promoted at Stade Louis-II for the 2024–2025 season, including on player sleeves and LED screens around the field. Exclusive social media initiatives will further help make the brand prominent, reaching a large and interested audience.

Yves Pouliquen, Vice President – Commercial, Europe, Apollo Tyres, said, “This partnership is an exciting opportunity to strengthen Vredestein’s presence in one of our key markets. AS Monaco’s rich history and commitment to excellence mirror our focus on performance and innovation. We look forward to building a successful relationship with the club and celebrating its achievements this season.”

Thibaut Chatelard, Marketing and Revenue Director, AS Monaco, said: “We are delighted to welcome Apollo Tyres and its Vredestein brand to the family of AS Monaco partners. This collaboration makes sense in view of the values we share, such as the constant pursuit of performance and excellence. There’s no doubt that this new support will be precious for the rest of our season, which promises to be thrilling.”

Nexen Tire, a leading global tyre manufacturer, has launched the Nexen N´Blue S tyre, adding to its range of summer tyres and providing drivers with advanced safety, energy efficiency and superior driving stability in wet and dry conditions.

Developed using highly dispersed silica and equipped with an optimised structural design, the Nexen N´Blue S tyre provides reduced road noise and improved driving stability. The tyre features an innovative tread compound, formulated with hydrophilic fillers and microstructure-controlled polymers, and provides lower rolling resistance and exceptional dry and wet grip. The tyre also excelled in test results by demonstrating an 11 percent improvement in wet braking distance compared to its predecessor.

Apart from providing excellent performance, the Nexen  N´Blue S also scores high on the sustainability index. The tyre provides an eco-friendly solution for environmentally conscious drivers by minimising fuel consumption and CO2 emissions. The Nexen N´Blue S summer tyre is available in 58 sizes, which makes it compatible with different types of vehicles.

Kumho Tire Vietnam Co., Ltd. is all set to expand its investment project in Binh Duong province of Vietnam, with the phase 3 of expansion commencing in early 2025. This was discussed at a recent meeting between Vo Van Minh, Deputy Secretary of the Provincial Party Committee and Chairman of the Provincial People's Committee (PPC), and Kim Hyun Ho, General Director of Kumho Tire Vietnam Co., Ltd.

The meeting was held on 13 November at the Administrative Centre of Binh Duong province, as per an official statement. Apart from the company’s investment till date and the planned investment for phase 3, the two also discussed about the challenges and obstacles regarding procedures and processes to have more land funds to expand the manufacturing plant, along with taking measures to tackle the obstacles. Kim Hyun Ho also conveyed to the PPC Chairman that Kumho Tire Vietnam Co., Ltd. belongs to South Korea's Kumho Tire Group and is currently ranked 10th in the car tyre manufacturing industry.

The company had invested in a tyre manufacturing plant in My Phuoc 3 Industrial Park in 2007 with a total initial investment of USD 308 million, which was supplemented by another USD 300 million in 2021. This extended the factory scale to six hectares and increased the production capacity to 12.5 million tyres annually. With the expansion in early 2025, the company will raise its total investment to USD 908 million and increase the factory's production capacity to 17 million tyres annually. The expanded capacity is expected to be operational by early 2026.

Yokohama-ATG, a leading manufacturer of all-terrain and off-the-road tyres, has expanded its Galaxy MFS 101 SDS range of forklift tyres with the launch of white, non-marking tyres.

The Galaxy MFS 101 SDS range consists of puncture-proof SDS tyres with extended wear limits designed for high-intensity working shifts and long durability. These are premium, solid rubber tyres developed for tough demands, a long service life and high driving comfort. The addition of white, non-marking tyres is specifically aimed at clean working environments.

Marked by a 3-stage construction process, the forklift tyres feature reduced heat build-up, effective shock absorption and minimised vibrations. The pattern design guarantees a smooth ride and good steerability thanks to its continuous centre lug and circumferential grooves. Furthermore, the flat walls and wide flat profile offer excellent stability when using a forklift for vertical stacking. The tyres are also equipped with anti-slip steel beads for improved rim fitment

In a case study on a CAT 2.5-tonne forklift that was used for handling heavy pallets on asphalt, the Galaxy MFS 101 SDS outshone the competitors with impressive performance. The tyre delivered an approximate 900 working hours before replacement against competitors’ 500 working hours.