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)

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Birla Carbon will present its carbon black solutions at the Global Polymer Summit 2026, scheduled for 28–30 September at the Kentucky International Convention Center in Louisville. The company will exhibit at Booth 417, targeting tyre and mechanical rubber goods (MRG) manufacturers seeking higher performance and reduced environmental impact.

The company’s portfolio spans tyre and MRG applications, addressing durability, strength, abrasion resistance and product life across tyres, belts, hoses, sealing systems and anti-vibration products. Birla Carbon will also feature Continua Sustainable Carbonaceous Material (SCM), a circular carbon range with consistent quality and global availability and Continua Sustainable Carbon Black (SCB), produced from recycled or bio-based feedstocks.

Supported by extensive manufacturing, technical expertise and customer-focused teams across the Americas, Birla Carbon provides reliable volumes, responsive service and tailored solutions. Attendees can meet company experts at Booth 417 to explore its product portfolio, technical capabilities and sustainable offerings.

John Davidson, President – Americas & EMEA, Birla Carbon, said, “The tyre and mechanical rubber goods industries are at an important phase, where performance, supply resilience and sustainability must advance together. The next phase of growth will depend on stronger collaboration across the value chain and the ability to translate innovation into scalable, commercially viable solutions. At Birla Carbon, we are combining our manufacturing network, portfolio strength, technical expertise and regional capabilities to help customers navigate this transition and build more resilient and sustainable businesses.”

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Michelin has unveiled the X Multi Energy D2 tyre, developed to address the specific challenges of regional haul operations. Fleets in this segment face demanding roads, frequent stop-and-start cycles and escalating fuel expenses that affect both performance and profitability. By blending durability, fuel savings and Michelin’s established performance standards, the new tyre aims to boost fleet productivity while reducing overall operating costs.

The tyre features a revised tread pattern and a new tread compound to better resist tread damage caused by high-torque vehicles and stop-and-go regional driving. It is constructed on Michelin’s Duracore casing, which integrates Infinicoil and Powercoil technologies and benefits from a reinforced bead design known as Duracoil Technology. This casing is engineered to last up to one million miles and support as many as four retreads.

In the effort to curb fuel expenses, the X Multi Energy D2 improves rolling resistance by 9 percent over its predecessor, the Michelin X Multi Energy D tyre, and by 18 percent compared with leading competitors. It also enhances late-life traction, offering 10 percent better wet handling and 16 percent better snow starting traction when worn, giving drivers and operations managers greater confidence on varying roads.

For original equipment manufacturers, the tyre meets Greenhouse Gas standards and supports applicable vehicle carbon-reduction requirements. Designed for regional applications where traction, durability and fuel efficiency matter, it is available in 295/75R22.5 LRG and 11R22.5 LRG and LRH sizes, replacing the X Multi Energy D tyre in those sizes.

Yahn Heurlin, VP of B2B Marketing, Michelin North America, Inc., said, “Michelin is driven by a deep commitment to understanding the needs and challenges customers face every day. This customer-first mindset inspires the development of purpose-built solutions designed to address real-world pain points and help fleets operate more efficiently.”

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Firestone, a Bridgestone Americas subsidiary, has unveiled the Destination LE4 highway touring tyre as the successor to its best-selling Destination LE3. The new model features a deeper tread depth, an advanced compound and a non-directional tread pattern, delivering longer wear life along with improved wet and light snow performance for year-round driving confidence.

Backed by a 70,000-mile limited warranty, the Destination LE4 is projected in external testing to wear 16 percent longer than its predecessor, 9 percent longer than the General Grabber H/T and 43 percent longer than the BFGoodrich Advantage Control HT. Thinner 3D sipes enhance traction and handling, while internal testing showed wet stopping distances reduced by 8 feet versus the Toyo Open Country H/T II and 4 feet versus the BFGoodrich Advantage Ctrl HT, with dry stopping improved by 8 feet and 2 feet, respectively, plus a 2-foot dry gain over the LE3.

Sustainability gains come through wear-resistance technology, optimised material usage that lowers raw material consumption and enhanced traction technology. Two technical firsts originated at the Bridgestone Americas Technology Center in Akron, Ohio: a high-strength, lightweight carcass architecture using light body plies and steel cords for durability and low rolling resistance despite deeper tread, and advanced compound mixing that improves ingredient consistency for tread wear, handling and wet grip.

Available in 65 sizes for 15- to 22-inch rims, the Destination LE4 covers small CUVs, SUVs, pickups and larger trucks, including the Mazda CX-5, Ford F-150, RAM 1500, Chevrolet Trailblazer and Nissan Armada.

Jeremy Norwood, Chief Engineer, New Product Engineering, Bridgestone Americas, said, “Drivers loved the Firestone Destination LE3 for its comfortable, quiet ride and all-season reliability. With the new Destination LE4, we enhanced those strengths by extending wear life and improving wet-weather handling, delivering dependable performance, confident control and everyday value.”

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The Yokohama Rubber Co., Ltd. has announced that Y.T. Rubber Co., Ltd. (YTRC), its Thai subsidiary focused on natural rubber processing, earned the Outstanding Provincial-Level CSR Organization Award. The honour formed part of the ‘CSR Award 2026’ initiative run by Thailand’s Ministry of Social Development and Human Security, and the presentation took place on 22 August 2026.

Built around the idea of ‘CSR Partnerships for Sustainable Thailand’, the award programme highlights organisations demonstrating exemplary corporate social responsibility at provincial or metropolitan level throughout the country’s 76 provinces and Bangkok. A total of 92 recipients – among them YTRC, other firms and bodies chosen nationwide and provincial CSR centres – convened at IMPACT Challenger Hall in Nonthaburi Province to collect commemorative plaques.

Governor Jumpot Wannachatsiri (left) presents flowers to YTRC Managing Director Noboru Takita (centre) and Department Manager Supachai Choosuwan at the Surat Thani Provincial Council.

YTRC, established in Surat Thani Province in 2008, has long pursued environmental preservation and dependable ties with nearby communities. Working with the Rubber Authority of Thailand (RAOT), it surveys natural rubber plantations and supplies management assistance to farmers, supporting sustainable procurement of the material. The company further backs agroforestry practices that give rubber farmers steadier incomes while partnering with the Surat Thani Provincial Office of Social Development and Human Security on efforts to nurture constructive community relations.

The recognition reflects YTRC’s continuous community-oriented CSR work and its notable local impact. A special event on 31 August saw the Surat Thani Provincial Council once more acknowledge those contributions, with the governor presenting a celebratory bouquet. Separately, the CSR Center of Surat Thani Province ranked among only nine centres nationwide to win the Outstanding Provincial CSR Promotion Center Award.

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