TYM announces first half 2024 performance... Sales of 438.3 billion won

TYM announced its first half 2024 performance on the 14th.

TYM, the agricultural machinery specialist company (CEO Kim Hiyong, Kim Dohoon / 002900), reported on the 16th that it recorded sales of 438.3 billion won, operating profit of 22.7 billion won, and net income of 24.2 billion won for the first half of 2024. Compared to the same period last year (2023), sales, operating profit, and net income decreased by 8.6%, 63.6%, and 51.0%, respectively.

The reason why agricultural machinery companies, including TYM, are struggling to improve performance is due to the lack of signs of recovery in the North American agricultural machinery market, which is the largest in the world. The North American market has seen a significant reduction in consumer purchasing sentiment as high interest rates have persisted for a long time, and this is affecting the recovery of demand for new agricultural machinery.

In fact, while TYM's North American subsidiary's sales decreased compared to the same period last year, it is evaluated that they achieved some degree of performance defense considering the depressed market conditions. Additionally, it was explained that operating profit and net income decreased due to the expansion of promotions to maintain market share in North America and the impact of the prolonged global increase in sea freight rates.

However, TYM reported that during the same period, domestic sales increased by about 11%, and the domestic market share for its main product, tractors, continued to rise following the first quarter, indicating that the company is performing well even in challenging market conditions. The company's debt ratio also improved, decreasing from 134% in the same period last year to 122% this year, reflecting enhanced financial health.

Meanwhile, TYM has passed the comprehensive domestic test for 'turning and implement control' performance of autonomous driving systems, organized by the Korea Agricultural Technology Promotion Agency last May. The new medium to large tractor model 'T130' is equipped with an autonomous driving technology module, which is the culmination of research and development by subsidiary TYMICT. TYM anticipates that the full-scale sales of medium to large tractors in the North American region will greatly aid in the recovery of performance.

TYM is also embarking on securing future growth engines for the advancement of cutting-edge digital agriculture. Through a business agreement between SK C&C and its subsidiary TYMICT, the three companies aim to concretize the development of autonomous farming machinery technology using generative AI. The goal is to quickly respond to market and technological environment changes.

Efforts to strengthen global market competitiveness continue. Following the export of 900 tractors to the Philippines in the first half of the year, TYM successfully held its first roadshow for dealers and farmers in the Philippines last July. In October, TYM plans to accelerate the diversification of global sales by participating in the 'Agrilink 2024,' the largest agricultural machinery exhibition in the Philippines, to promote the TYM brand and spearhead the exploration of new markets in Southeast Asia.

A TYM representative stated, "While the North American market downturn has led to decreased sales and operating income, there are positive signs such as an increase in domestic market sales and a decrease in the debt ratio. We will strive to achieve positive results in securing future growth engines in the second half of the year, including the recovery of sales in North America, diversification of the global market, and the advancement of cutting-edge digital agriculture through technological capabilities."

TYM performance first half of 2024

Unit: Million Won