Hynix Semiconductor 4th-quarter profit plunges

Jan 27, 2011 By KELLY OLSEN , AP Business Writer
Hynix Semiconductor Inc.'s modules are shown at its office in Seoul, South Korea, Thursday, Jan. 27, 2011. Hynix Semiconductor's fourth-quarter net profit plunged 83 percent amid lower chip prices and a one-time charge related to a legal case. (AP Photo/ Lee Jin-man)

(AP) -- Hynix Semiconductor's fourth-quarter net profit plunged 83 percent amid lower chip prices and a one-time charge related to a legal case.

Hynix, the world's second-largest manufacturer of computer memory chips, earned 110.1 billion won ($98.8 million) in the three months ended Dec. 31, it said Thursday. That compared with net profit of 656.8 billion won a year earlier.

The result came after Hynix recorded record high net profit in the previous three months. It still marked the company's sixth straight quarter in the black after returning to profit in the third quarter of 2009 following two years of losses.

Beginning in 2008, Hynix began slashing costs - including shuttering its U.S. factory - and received an infusion of fresh capital via bank loans and a share sale to revive its fortunes.

Sales in the fourth quarter fell 2 percent to 2.75 trillion won.

Inc. manufactures , used mostly in personal computers, and ranks No. 2 globally behind South Korean rival Co. It also ranks No. 4 in the world in NAND , which are used in products such as digital cameras, music players and smartphones.

The average selling price for Hynix's DRAM chips in the fourth quarter declined 28 percent from the previous three months, the company said, while shipments increased 18 percent. The average selling price for NAND flash memory chips fell 12 percent, while shipments increased 32 percent.

Hynix's net profit was hit by 69 billion won in net interest expense as well as a charge related to a legal dispute, the company said. A South Korean court in December ordered Hynix to pay 160.7 billion won to Hyundai Securities Co. over a disputed liability that had its roots in another case involving a separate company dating back to 2000, according to Park Seong-ae, a company spokeswoman.

Operating profit - seen as a direct indicator of business performance before taxes, dividends, asset sales and other items figured into net profit or loss - declined 41 percent to 417.6 billion won.

Shares in Hynix, which released earnings results before the stock market opened, fell 0.4 percent to 28,100 won.

Explore further: China Internet giants in tit-for-tat battle for users

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Hynix net profit surges to record as sales rise

Oct 28, 2010

(AP) -- Hynix Semiconductor, the world's second-largest manufacturer of computer memory chips, said third-quarter net profit more than quadrupled to a record high as increased shipments helped make up for chip price declines.

Hynix turns 2Q net profit amid record sales

Jul 22, 2010

(AP) -- Hynix Semiconductor turned a net profit in the second quarter after a loss the year before as sales rose to a record and prices for its mainstay computer memory chips increased.

S.Korea's Hynix notches record sales

Apr 22, 2010

South Korea's Hynix Semiconductor said Thursday it posted record quarterly sales in the three months to March on the back of strong demand, achieving a third straight quarter in the black.

SKorea's Hynix swings to profit as chip industry recovers

Jan 21, 2010

South Korea's Hynix Semiconductor said Thursday it swung to a net profit in the fourth quarter, following a loss in the period the year earlier, in a further sign that the global chip industry is recovering from a two-year ...

SKorea's Hynix finally swings to profit

Oct 23, 2009

South Korea's Hynix Semiconductor, the world's second largest memory chip maker, Friday announced a profit for the third quarter after seven straight quarters of losses.

Recommended for you

Toyota finds new air bag issue, recalls more cars

3 hours ago

Toyota Motor Corp. recalled more than 40,000 vehicles in Japan on Thursday as part of a worldwide scare over defective air bags and is investigating a new type of air bag problem that could lead to further recalls.

Netflix sues Yahoo CIO for alleged kickbacks

17 hours ago

Netflix is suing a former company vice president who is now chief information officer at Yahoo, accusing him of receiving money from vendors he hired to work with the video streaming company.

BlackBerry courts iPhone users with cash

Nov 25, 2014

Canadian smartphone maker BlackBerry is wooing Apple customers with a cash offer for trade-ins of iPhones for its new square-screened, keyboard-equipped Passport.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.