Continental Q1 Consolidated Sales at EUR9.3 billion

Nominees Announced for 2023 Recircle Awards

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)

California OEHHA Study Finds No Significant Risk From Crumb Rubber In Synthetic Turf

California OEHHA Study Finds No Significant Risk From Crumb Rubber In Synthetic Turf

A new study from the California Office of Environmental Health Hazard Assessment (OEHHA) has concluded that crumb rubber infill made from recycled tyres and used in synthetic turf fields poses no significant health risk to those who use or observe them. The comprehensive evaluation found no evidence linking these fields to cancer or other health issues for athletes, officials, coaches or spectators, including young children.

These engineered fields, designed to replicate natural grass, are popular due to their low maintenance, water efficiency and durable, consistent surface. Their widespread adoption in California includes over 900 installations. The infill itself consists of small granules from recycled waste tyres, which help keep the artificial blades upright and provide cushioning and traction.

OEHHA conducted the study to support California's sustainability efforts, specifically its Waste Tire Program, which seeks safe and beneficial uses for recycled materials that would otherwise go to landfills. To ensure a thorough assessment, researchers tested 35 different fields, varying in age and location to represent all of California's climate zones. Multiple samples were taken from each field to account for material differences, and air quality was monitored both during active play and at rest.

The study’s scope was unprecedented, analysing over 100 chemicals of potential concern, far more than previous investigations. In collaboration with Lawrence Berkeley National Lab, researchers simulated human sweat and digestion to identify all chemicals to which a person might be exposed. To understand exposure pathways, OEHHA partnered with UC Berkeley and the University of Arizona. They surveyed over a thousand soccer players, ranging in age from 7 to 71, about their playing habits and observed games to document contact with the turf. The analysis used data from goalies, who have the most frequent contact, to estimate the maximum risk for all players, also considering the potential exposure for a crawling toddler. The final analysis indicated that risks related to cancer, reproductive harm or sensory irritation were negligible.

Kris Thayer, Director, OEHHA, said, "This study should ease concerns about the safety of crumb rubber use in synthetic turf fields. Athletes of all ages can use these fields without parents worrying about this commonly used material."

Zoe Heller, Director, CalRecycle, said, "Protecting public health is our top priority, and California is committed to making sure waste tyres are managed safely so they don’t litter communities or pose risks to residents. CalRecycle appreciates the work of OEHHA and its partners to advance our understanding in support of a cleaner, healthier circular economy."

Vredestein Quatrac Pro 2 To Feature Performance-Focused Compound And Structural Advancements

Vredestein Quatrac Pro 2 To Feature Performance-Focused Compound And Structural Advancements

The all-new Vredestein Quatrac Pro 2, an ultra-high-performance (UHP) all-season tyre scheduled for launch this summer, will come armed with a next-generation tread compound technology and a highly innovative structure to deliver an unrivalled combination of year-round safety, performance and efficiency across dry, wet and winter conditions. This model represents a major advancement for the Vredestein brand, which has been a pioneer in the all-season sector since the early 1990s.

Developed from a clean sheet by Apollo Tyres at its Global R&D Centre in the Netherlands, the Quatrac Pro 2 was not an evolution of an existing design. Instead, engineers completely reimagined the tread, materials and structure to overcome the typical performance compromises found in this category. The tyre will be manufactured at Apollo’s advanced facility in Hungary.

The core of its capability is a new directional tread pattern. Longitudinal grooves work with a V-shaped design to maximise resistance to aquaplaning by efficiently evacuating water. Lateral grooves are sculpted to harmonise wet-road performance with winter traction, while a stable centre rib ensures precise dry handling and braking stability on both wet and dry surfaces. For snow-covered roads, advanced 3D interlocking sipes in the shoulder blocks provide grip without compromising tread stability in other conditions. A multi-pitch tread block sequence also refines the acoustic signature, which is particularly advantageous for electric and hybrid vehicles. The entire Quatrac Pro 2 range achieves an A-rated exterior noise label.

A revolutionary next-generation traction compound is central to the tyre’s versatile performance. This advanced material combines a unique mixture of resins and polymers with complex multi-filler technology. The result is a tyre that maintains a broad operational range across varying temperatures, with a strong emphasis on wet braking. It balances low-temperature flexibility for reliable grip on cold, wet and snowy surfaces with high-temperature stability for consistent handling and abrasion resistance on hot, dry roads, enhancing durability year-round. The tyre bears the Three Peak Mountain Snowflake (3PMSF) symbol, confirming its winter capability.

This new compound and tread design are also optimised for electric and hybrid vehicles, managing the challenges of high battery mass and instant electric motor torque by ensuring consistent grip and tread stability. The engineering goal was to provide high levels of cornering stability and precision without sacrificing ride comfort, a balance that sets the tyre apart.

Complementing the compound, the tyre's structure has been entirely re-engineered. A stiffer bead area with a double taper design ensures secure bead seating even at high speeds while distributing forces more evenly for improved comfort and stability. A dedicated belt design optimises the tyre's footprint for enhanced mileage. In mixed fitments, this improves steering precision at the front axle and stability at the rear.

The Vredestein Quatrac Pro 2 will be available in an extensive range of sizes for 17- to 24-inch rims, including section widths up to 355 for high-performance vehicles. With speed ratings up to Y (300 kmph), it firmly positions itself at the pinnacle of the UHP all-season category, with high load rating options on select sizes.

Daniele Lorenzetti, Chief Technology Officer, Apollo Tyres Ltd, said, “The Quatrac Pro 2 has exceeded the very demanding performance target we set during development while delivering superior wet grip, great snow handling, low rolling resistance and high mileage. By focusing on the fundamentals of tyre behaviour and rethinking tread design, materials and structure, we have created a performance-focused all-season tyre that delivers stability, mileage, all-season grip with best wet performance in category.”

Trelleborg Tires And Gomería Altamirano To Debut Joint Exhibit At Expoagro 2026

Trelleborg Tires And Gomería Altamirano To Debut Joint Exhibit At Expoagro 2026

Trelleborg Tires will showcase its agricultural tyre solutions alongside its official distributor, Gomería Altamirano, at Expoagro 2026. The event is scheduled for 10–13 March 2026 at the Predio Ferial y Autódromo de San Nicolás in Buenos Aires, Argentina. Visitors to Booth 1504 will have the opportunity to explore high-performance radial tyres designed for the demands of contemporary farming. This collaboration represents a significant step in strengthening Trelleborg’s market presence in Argentina through a partnership with a well-established regional distributor.

The Argentine agricultural sector is increasingly transitioning from bias to radial tyre technology. This shift is driven by greater mechanisation, the use of higher horsepower equipment and a focus on improving field productivity. Farmers are turning to radial solutions for benefits such as superior traction, reduced fuel consumption, minimised soil compaction and longer tyre life. Trelleborg and Gomería Altamirano are actively supporting this evolution by providing products tailored to local conditions.

At the expo, two flagship tyre ranges will be highlighted. The TM1000 ProgressiveTraction series, intended for high-horsepower tractors, features patented double-edge lug technology to enhance grip, optimise the footprint and lower fuel usage. The TM3000 CFO range, engineered for combine harvesters, offers high load capacity at low inflation pressures to preserve soil structure and ensure reliability during harvesting.

With over six decades of experience serving central Argentina, Gomería Altamirano has built a strong regional reputation through its branches in Río Cuarto, Córdoba and Santa Rosa. Expoagro 2026 will mark their first joint exhibition, underscoring their shared dedication to delivering advanced radial technology to local farmers.

Pablo Altamirano, CEO, Gomería Altamirano, said, “For us, it is a source of pride to strengthen our partnership with Trelleborg Tires and bring world-leading tyre technology closer to Argentine producers. Trelleborg tyres are original equipment on many of the high-horsepower tractors, harvesters and sprayers currently sold and operating in the country. At Expoagro, we want to showcase these high-performance radial solutions, together with the track line that we are already commercialising, expanding the technological alternatives available to farmers.”

Eduardo Marrone, Commercial Manager, Trelleborg Tires, said, “We are proud to strengthen our alliance with Gomería Altamirano, a partner with deep regional expertise and a solid reputation in the Argentine agricultural market. Their close relationship with farmers plays a key role in supporting the country’s transition to radial technology. Together, we deliver premium tyre solutions that increase productivity, improve operational efficiency and promote more sustainable farming practices.”

Pirelli Ready For Shanghai As F1 Sprint Returns With New Trophy Design

Pirelli Ready For Shanghai As F1 Sprint Returns With New Trophy Design

Pirelli is all set for the Chinese Grand Prix, which marks the first Sprint weekend of the 2026 Formula 1 season and will see the presentation of the newly redesigned Pirelli Sprint Qualifying Award. The second round of the championship will feature a 19-lap short race on Saturday, the first of six such events scheduled for the year.

The tyre allocation for the event remains unchanged from previous years, with teams supplied the C2, C3 and C4 compounds for the 5.451-kilometre Shanghai International Circuit. The track layout, inspired by the ‘shang’ ideogram, includes two primary straights and sixteen corners. One notable straight connects a slightly banked Turn 13 to Turn 14, while the other, which exceeds one kilometre in length, is where the starting grid is situated.

The circuit presents a varied challenge with a mix of high-speed corners, such as the sweeping Turns 7 and 8, and slower sections found at Turns 1, 3, 6 and 14. These demanding sequences, combined with fast straights, place significant stress on the tyres and will test the energy recovery capabilities of the new power units. Drivers may face difficulties with corner-entry lock-ups under heavy braking, similar to issues observed during pre-season testing in Bahrain, which features comparable braking zones.

A key variable for the weekend is the track surface, which was completely resurfaced in August 2024. The new asphalt initially provided higher grip and lower lap times, but its smoothness led to front-axle graining during the 2025 event, particularly in the Sprint race. However, as the surface has had another year to age, grip levels might be slightly reduced, potentially lowering the risk of graining. This will be assessed in early practice sessions. Teams’ simulation data suggests lap times will be closely matched to last year’s, indicating that the performance loss expected from the new car generation may be offset by other factors.

Looking back at the 2025 race, most drivers started on the Medium compound, with only three opting for the Hard. The Soft tyre was unused in the Grand Prix. The winning strategy was a one-stop, featuring a long final stint on the Hard tyre, which proved durable and resistant to graining. The podium finishers made their sole pit stops between laps 14 and 15, with Oscar Piastri taking victory ahead of Lando Norris and George Russell.

The trophy for the pole-sitter features a Soft tyre above a base embedded with a helmet decorated in the colours of the Chinese flag, which will be engraved with the winner’s name and car number. The Chinese Grand Prix returns for its 19th running at this venue, having first appeared on the calendar in 2004. Lewis Hamilton and Mercedes share the record for the most wins here, with six each. Hamilton also holds the record for the most podium finishes, with nine.

To celebrate the event, a special podium cap has been created in imperial yellow, a colour traditionally associated with prestige. It features designs commemorating the Year of the Horse and will be available for purchase on the Pirelli e-commerce platform.