[Asia Economy Reporter Kwak Minjae] Agricultural machinery specialist TYM announced on the 3rd that its operating profit for the third quarter of this year reached 24.3 billion KRW, marking a 603% increase compared to the same period last year.
Sales recorded 232.1 billion KRW, a 16% increase compared to the same period last year. With cumulative sales of 922.8 billion KRW up to the third quarter and clear performance expected in the fourth quarter as well, annual sales are anticipated to exceed 1 trillion KRW this year.
The rise in sales is largely attributed to TYM’s expansion of export channels to North America. Despite concerns over economic recession and reduced consumer spending, the preference for small tractors in North America remained strong following the first half of the year, resulting in a solid export growth curve.
Cost reduction effects from improved cost structure also positively contributed to the significant increase in operating profit. The exchange rate increase due to the stronger dollar compared to the same period last year also acted as a tailwind for the strong performance. The average exchange rate in the third quarter this year was 1,339.14 KRW, significantly higher than the average exchange rate of 1,157.95 KRW in the same period last year. The expansion of brand awareness of TYM-USA, the North American local subsidiary, also played a role in boosting third-quarter sales, according to the company.
A TYM official stated, "Following the focus on exporting small tractors to the North American market this year, we plan to sequentially expand the supply of medium and large tractors, so performance is expected to rise even more steeply. We will secure future growth engines by significantly improving work efficiency through corporate restructuring such as integration and efficient allocation of human resources," he said.
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