Hynix posts results that exceed forecasts

Hynix Semiconductor Inc., the world’s second-largest maker of computer memory chips, posted better-than-expected quarterly net profit yesterday despite weaker chip prices caused by a persistent inventory glut. In the July-September period, Hynix’s net income fell 3.5 percent from a year ago to 511.5 billion won ($488 million), the company said in a regulatory filing. Operating profit declined 22.4 percent from a year earlier to 377.8 billion won, and sales fell 3.3 percent to 1.49 trillion won. Compared with three months earlier, however, net profit jumped 114.6 percent and operating profit soared 76.9 percent, helped by a nascent recovery in dynamic random access memory prices in recent months. The third-quarter net profit is far higher than a market consensus of 340 billion won. “Because Hynix increased its proportion of NAND flash memory sales, the company posted a better-than-expected profit for the third quarter,” said Hanwha Securities Co. analyst Ahn Sung-ho. The spot price of benchmark 256-megabit DDR (double data rate) DRAM chips is now around $2.60 per unit, according to Taiwan-based online broker DRAMexchange.com. That compares to about $4.50 per unit a year ago.