SK hynix reports record sales as it warns of weakness ahead
SK hynix reported record sales in the second quarter as strong NAND flash demand compensated for weakness in the memory market, with the net coming in just short of the expectations.
The company, which is the world's No. 2 maker of memory chips, warned that capital expenditures could be delayed next year as demand for some chips weakens and inventories start piling up.
"We are in a situation where next year's investment in facilities must be adjusted to a significant degree," SK hynix President Noh Jong-won during a conference call on Wednesday.
The chip maker said that its net profit came at 2.88 trillion won ($2.19 billion), up 45 percent on year, although the figure was short of FnGuide's market consensus of 2.93 trillion won.
Sales rose 34 percent to 13.81 trillion won in the April-June period, the highest in its corporate history, as an upturn in the prices of NAND flash chips and improved production yields offset declining prices of dynamic random-access memory (DRAM) chips.
The sales figure was shy of the consensus of 14.44 trillion won.
Operating profit surged 56 percent to 4.19 trillion won in the second quarter on-year, beating the market estimate of 3.95 trillion won.
While the chipmaker highlighted a sound performance amid intensifying uncertainties and rising costs, it suggested trouble in the coming months as demand for PCs, smartphones and servers is expected to weaken.
The tough conditions are pushing the company to either reduce or delay investment. It decided to delay a planned expansion of its chip plant in Cheongju, North Chungcheong, last week.
BY PARK EUN-JEE [email@example.com]