TYM sets record Q2 earnings, raises interim dividend 2.4-fold to 120 won per share

TYM, a global agricultural machinery maker that posted record second-quarter earnings, said its board of directors approved a cash interim dividend of 120 won per common share at a meeting Wednesday.

The total payout amounts to 4.78 billion won ($3.38 million), covering 39.86 million shares — the company's 41.4 million issued shares minus 1.54 million treasury shares. The dividend record date is Aug. 28, and payment will be made within one month of the board resolution.

The interim dividend is 2.4 times last year's payout of 50 won per share. TYM has distributed an interim dividend every year since introducing the practice in 2022. Last year, the company paid a combined 290 won per share — 50 won as an interim dividend and 240 won as a year-end dividend — marking its largest annual payout on record.

The higher dividend reflects improved first-half earnings. TYM disclosed Thursday that it posted consolidated sales of 552.2 billion won, operating profit of 62.6 billion won and net profit for the period of 56.7 billion won in the first half of this year, up 13.1 percent, 59.1 percent and 148.0 percent, respectively, from a year earlier. The first-half operating profit margin stood at 11.3 percent and the net profit margin at 10.3 percent. The figures are preliminary and subject to adjustment pending an external auditor review.

Growth in North America drove the earnings improvement. TYM said expanding sales of its US-market strategic models, the T4058P and T5075, and increasing the share of mid- to high-horsepower tractors boosted profitability. Technical training for dealers and a stronger parts supply chain also supported its local sales base, the company said.

TYM is pursuing shareholder returns through a combination of dividends and treasury share buybacks. The company has been repurchasing its own shares since 2019, and last November decided to cancel 3.65 million shares — equivalent to 8.1 percent of total issued shares — worth about 22 billion won.

TYM's dividend stance stands out against its domestic rival. Daedong, one of the two dominant players in South Korea's agricultural machinery market, has maintained a year-end dividend of 100 won per share since 2023. While Daedong leads in revenue, TYM posted higher operating profit last year — 64.1 billion won versus Daedong's 31.1 billion won.

"We expanded the interim dividend on the back of improved first-half performance," a TYM official said. "We will continue to pursue a sustainable shareholder return policy grounded in stable results."