S. Korea's Hynix swings to red in Q4 on poor demand

Feb 02, 2012
South Korea's Hynix Semiconductor, the world's second-largest maker of memory chips, said Thursday it swung into the red in the fourth quarter as chip prices fell on weak demand for personal computers.

South Korea's Hynix Semiconductor, the world's second-largest maker of memory chips, said Thursday it swung into the red in the fourth quarter as chip prices fell on weak demand for personal computers.

The net loss was 239.9 billion won ($213.1 million) in October-December compared to a net profit of 30 billion won a year earlier, the company said. It was the second consecutive quarterly net loss.

Fourth-quarter sales fell 7.2 percent year-on-year to 2.55 trillion won, and the operating loss was 167.5 billion won compared to an operating profit of 293.7 billion a year earlier.

For the whole of last year the company's net loss was 56 billion won, compared with a net profit of 2.6 trillion won the previous year. Sales fell 14.1 percent on-year to 10.4 trillion won and operating profit dropped 89.1 percent to 325.5 billion won.

"Last year, global economic uncertainty and natural disasters in Japan and Thailand undercut demand for tech products," the company said in a statement.

The prices of used in personal computers have been dropping since September 2010. Last year's floods in Thailand, the world's leading maker of computer drives, also hit global computer markets.

Hynix competes with Samsung Electronics in the (DRAM) chip market and with Japan's Toshiba in the market.

Hynix said DRAM prices fell 19 percent in the fourth quarter and prices of NAND dropped 17 percent.

Explore further: Yahoo profit surges on Alibaba divestment, mobile

add to favorites email to friend print save as pdf

Related Stories

South Korea's Hynix swings to net loss in Q3

Oct 27, 2011

South Korea's Hynix Semiconductor, the world's second-largest memory chip maker, said Thursday it swung to a third-quarter net loss as weak demand for personal computers dampened sales.

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 ...

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.

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

Turner channels removed from Dish amid pact spat

12 hours ago

Channels such as Cartoon Network and CNN are no longer part of Dish's programming lineup as a deadline has passed for the satellite TV provider and Turner Broadcasting to renew their distribution agreement.

Verizon reports higher 3Q net income, revenue

13 hours ago

Verizon Communications Inc. on Tuesday reported higher net income and revenue in its third quarter, helped by strong wireless subscriber growth and demand for its high-speed FiOS Internet services.

Amazon, Simon & Schuster sign book retail deal

22 hours ago

Amazon has reached a deal with American book publisher Simon & Schuster, the companies said, though the e-commerce giant remains at loggerheads with France's Hachette over e-book pricing.

User comments : 0