Hynix Goes in Black after a Year

Hynix Semiconductor is known to have gained management profits of 10.9 billion won between January and March this year. It is the first time for Hynix to sell products in profit since last year’s first quarter.

Hynix reported on the 15th that this year’s first quarter marked 823 billion won in total sales (based on domestic headquarters), which is 63 Per Cent higher than last year’s 4th quarter, and 10.9 billion won in management profit.

It is due to improvements in the D-Ram market during this period of time. 128M D-Ram’s international trade price was 1.84 dollar by last year’s end, but it increased up to 4.3 dollars in this year.

However, most of management profit was spent for financial expenses, and therefore, the net income marked only 3 billion won.

According to consolidated financial statements, sale was 869 billion won, which is 34 Per Cent higher than the previous quarter, management profit 145 billion won, and the net income 35 billion won.

Although the semiconductor market is to be settled temporarily in the year’s 2nd quarter, the economy is expected to recover in long-terms, improving profitability in the 2nd half. “If the average sale-price of 128M D-Rams remains at minimum 3.2 dollars, this year will attain 5 trillion won in sale, enabling self-existence,“ insisted Hynix. Its present average trade price is known to be about 4.5 – 4.7 dollars.

Im-Sook Ha artemes@donga.com