UPDATE 2-Hynix cautious after record Q2; shares fall

* Q2 operating profit at record 1.0 trln won, beats
forecasts

* Sees Q3 DRAM, NAND shipments rising q/q, but prices to
fall

* Shares fall 3.4 pct to 2-month lows, underperform market
(Adds details, comments)

By Miyoung Kim and Lee Chyen Yee

SEOUL, July 22 (Reuters) - Hynix Semiconductor (000660.KS),
the world's No. 2 memory chip maker, warned prices would fall
this quarter, sending its shares to a two-month low as the
industry braces for weaker profit growth.

Hynix posted a record quarterly profit on Thursday, but
said it expected prices of DRAM (dynamic random access memory)
to fall sequentially in the third quarter, as consumer spending
is set to decrease on growing economic uncertainty and
production ramps up.

"Investors are growing worried that Hynix's third quarter
earnings momentum will slow," said Han Seung-hoon, an analyst
at Korea Investment & Securities.

"Chip pricing is seen weak while expected shipment growth
is not that impressive."

Hynix shares fell 3.4 pct to their lowest since May.

Hynix, which trails sector leader Samsung Electronics
(005930.KS) and competes with Japan's Toshiba Corp (6502.T) and
Elpida Memory (6665.T), makes DRAM and NAND-type flash memory.

DRAM chips go into computers and servers, while NAND flash
is found in gadgets such as Apple's (AAPL.O) iPhones.

The weaker price outlook comes as Hynix expects DRAM
shipments to grow by mid-single digit percent in the third
quarter from the previous three months, while NAND shipments
will be up by around 20 percent during the same period, company
officials said.

"Due to the current economic situation, demand for consumer
PCs will be impacted somewhat," Park Nae-hak, Hynix's vice
president of marketing, told an investors' conference call.

"Our DRAM chip prices would fall slightly in the third
quarter and the market's overall drop will be more than that."

Top memory chip makers have been posting robust growth so
far this year, but some analysts doubt the trend will persist
because of concerns about European demand, decelerating growth
in some Asian markets and the possibility of a memory chip
glut. [ID:nTOE65T07D]

MOMENTUM TO EASE

Earlier this month, the world's biggest chip company Intel
(INTC.O) and Apple gave upbeat outlooks, saying renewed
corporate spending and demand from Asian consumers would help
sales. [ID:nN12197658] [ID:nN20107855]

Hynix said corporate PC demand remained solid, but consumer
demand was likely to be impacted by the uncertain economic
outlook.

Nanya Technology (2408.TW), Taiwan's No.2 DRAM chip maker,
on Wednesday lifted its capital spending forecast for this year
by a third, raising concerns of accelerated supply growth.
[ID:nTOE66J034]

Hynix reported consolidated record operating profit of 1.0
trillion won ($830.9 million) in the April-June quarter,
beating a consensus estimate of 973 billion won based on
Thomson Reuters I/B/E/S.

The figure was higher than a 799 million won profit in the
previous three months and compared with a 211 billion won loss
a year earlier.

Net profit for the quarter was 665 billion won, compared
with a loss of 58 billion won a year earlier, while revenue was
just over 3 trillion won, in line with forecasts.

Hynix shares fell 6.2 percent in the April-June quarter,
underperforming the Korea Composite Stock Price Index's 0.3
percent gain.

Former Hynix creditors, now shareholders, own 20 percent of
the company and plan to sell 5 percent this
year.[ID:nTOE66D00P]
($1 = 1,207 won)
(Additional reporting by Jungyoun Park and Suh Kyungmin;
Writing by Lee Chyen Yee; Editing by Jonathan Hopfner and
Lincoln Feast)