SK Hynix recorded an 'earnings shock' (performance shock), turning to a quarterly deficit in 10 years due to deteriorating memory semiconductor industry conditions following the global economic downturn.
This is because memory demand has decreased due to sluggish demand for PCs and smartphones, and product prices have fallen sharply.
SK Hynix announced today (1st) that its operating loss in the fourth quarter of last year was 1.7 trillion won, compared to the same period last year (operating profit of 4.2195 trillion won).
It is the first time in 10 years since the third quarter of 2012 (-24 billion won) that a quarterly operating loss came out.
The operating loss in the fourth quarter was 23.9% higher than the market forecast of 1.3735 trillion won compiled by Yonhap Infomax.
Sales and net loss in the fourth quarter were KRW 7.6986 trillion and KRW 3.5235 trillion, respectively.
Consolidated operating profit last year was tentatively tallied at 7.066 trillion won, down 43.5% from the previous year.
Sales increased by 3.8% year-on-year to KRW 44,648.1 billion.
Net profit decreased by 74.6% to KRW 2.4389 trillion.
SK Hynix said, “Sales growth continued last year, but operating profit decreased compared to the previous year as the semiconductor downturn continued from the second half of the year.” We are working hard to minimize the damage caused by the deteriorating business environment.”