AGL 38.02 Increased By ▲ 0.08 (0.21%)
AIRLINK 197.36 Increased By ▲ 3.45 (1.78%)
BOP 9.54 Increased By ▲ 0.22 (2.36%)
CNERGY 5.91 Increased By ▲ 0.07 (1.2%)
DCL 8.82 Increased By ▲ 0.14 (1.61%)
DFML 35.74 Decreased By ▼ -0.72 (-1.97%)
DGKC 96.86 Increased By ▲ 4.32 (4.67%)
FCCL 35.25 Increased By ▲ 1.28 (3.77%)
FFBL 88.94 Increased By ▲ 6.64 (8.07%)
FFL 13.17 Increased By ▲ 0.42 (3.29%)
HUBC 127.55 Increased By ▲ 6.94 (5.75%)
HUMNL 13.50 Decreased By ▼ -0.10 (-0.74%)
KEL 5.32 Increased By ▲ 0.10 (1.92%)
KOSM 7.00 Increased By ▲ 0.48 (7.36%)
MLCF 44.70 Increased By ▲ 2.59 (6.15%)
NBP 61.42 Increased By ▲ 1.61 (2.69%)
OGDC 214.67 Increased By ▲ 3.50 (1.66%)
PAEL 38.79 Increased By ▲ 1.21 (3.22%)
PIBTL 8.25 Increased By ▲ 0.18 (2.23%)
PPL 193.08 Increased By ▲ 2.76 (1.45%)
PRL 38.66 Increased By ▲ 0.49 (1.28%)
PTC 25.80 Increased By ▲ 2.35 (10.02%)
SEARL 103.60 Increased By ▲ 5.66 (5.78%)
TELE 8.30 Increased By ▲ 0.08 (0.97%)
TOMCL 35.00 Decreased By ▼ -0.03 (-0.09%)
TPLP 13.30 Decreased By ▼ -0.25 (-1.85%)
TREET 22.16 Decreased By ▼ -0.57 (-2.51%)
TRG 55.59 Increased By ▲ 2.72 (5.14%)
UNITY 32.97 Increased By ▲ 0.01 (0.03%)
WTL 1.60 Increased By ▲ 0.08 (5.26%)
BR100 11,727 Increased By 342.7 (3.01%)
BR30 36,377 Increased By 1165.1 (3.31%)
KSE100 109,513 Increased By 3238.2 (3.05%)
KSE30 34,513 Increased By 1160.1 (3.48%)
Technology Print 2020-02-02

SK Hynix posts 95 percent quarterly profit plunge

The world's second-largest memory chip maker, South Korea's SK Hynix, posted a 95 percent quarterly profit plunge on Friday as it suffers from a long-running lull in the global market.
Published 02 Feb, 2020 12:00am

The world's second-largest memory chip maker, South Korea's SK Hynix, posted a 95 percent quarterly profit plunge on Friday as it suffers from a long-running lull in the global market.

The East Asian country's chip manufacturers - led by behemoth Samsung Electronics - have enjoyed record profits in recent years as prices for their products soared.

SK Hynix supplies chips to companies from US giant Apple to China's Huawei but demand began to decline and supply increase after manufacturers invested billions in new factories.

Operating profit for SK Hynix dropped 95 percent to 236 billion won ($198 million) year on year in the period October to December, the company said in a statement.

The firm also recorded a net loss of 118 billion won, while sales fell 30 percent to 6.9 trillion won.

For the full year 2019, net profit was 2.01 trillion won, down 87 percent on the previous year.

The manufacturer has been strained by a trade war between China and the United States and caught in a diplomatic row between Seoul and Tokyo over wartime history, with Japan in July imposing tough restrictions on exports crucial to South Korean tech giants.

"The increase in inventory burden and conservative purchasing policies on the side of customers led to a slowdown in demand as well as price falls," the chip maker said.

The company will "carry out more prudent production and investment strategies, as complexities and uncertainties still remain much higher than in the past," it added. Weakening overseas demand for memory chips - one of South Korea's key trade items - is bad news for the country's export-driven economy.

Rival Samsung faces similar challenges and has reported a 38 percent fall in net profit for the October-December period.

But Avril Wu, an analyst at the Taipei-based market tracker TrendForce, told AFP that there will be an improvement in the company's profitability in the first quarter of this year.

"We expect both DRAM and NAND Flash average selling price to rise, while the cost of goods sold has no reason to increase as far as we know," she added.

Copyright Agence France-Presse, 2020

Comments

Comments are closed.