SK Hynix posts near 30% drop in Q2 net profit

Jul 24, 2014

South Korea's SK Hynix said Thursday its second-quarter net profit tumbled nearly 30 percent from a year ago on falling memory chip prices.

Net profit for the world's second-largest chipmaker amounted to 674 billion won ($658 million) for April to June, down 29 percent from a year ago.

Operating profit inched down three percent to 1.08 trillion won during the same period, the Icheon-based company said in a statement.

Sales remained nearly unchanged at 3.92 trillion won.

Hynix said the average selling price of its dynamic (DRAM) chips, mostly used for computers, fell five percent in the second quarter.

The average price of its NAND flash chips—used for mobile devices—also dropped 19 percent although production increased 54 percent.

Global demand for is expected to grow later this year in emerging markets including China, it said.

Chipmakers are also expected to keep production minimal to ward off a glut that hurt their businesses earlier this year, a combination that will help boost prices later, the company said.

Explore further: SK Hynix posts Q1 surge in net profit

add to favorites email to friend print save as pdf

Related Stories

SK Hynix posts Q1 surge in net profit

Apr 24, 2014

South Korea's SK Hynix Inc said Thursday its first-quarter net profit surged nearly 350 percent from the previous year on a spike in sales of PC memory chips.

SK Hynix Q4 net profit hit by plant fire

Jan 28, 2014

South Korean chipmaker SK Hynix reported Tuesday a drop in net profit for the fourth quarter, due to a fall in production following a fire at its plant in China.

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.

Recommended for you

Sony forecasts $2B loss as smartphones lag (Update)

Sep 17, 2014

Sony expects its annual loss to swell to $2 billion and has canceled dividends for the first time in more than half a century after writing down the value of its troubled smartphone business.

Alibaba post-IPO structure gives insiders control

Sep 17, 2014

Control over Alibaba Group will stay in the hands of founder Jack Ma and other company veterans after the Chinese e-commerce giant goes public on the New York Stock Exchange in a record busting share sale.

User comments : 0