* Q2 op profit 447 bln won vs consensus fcast of 431 bln won
* Q2 DRAM shipments unchanged vs guidance of low single pct
* Sees weak DRAM demand in Q3 due to soft global economy
* Hynix shares up 1.7 pct in flat market
By Miyoung Kim
SEOUL, July 21 Hynix Semiconductor Inc
, the world's No.2 computer memory chip maker,
reported on Thursday second quarter profit more than halved from
a year ago, hit by feeble demand from computer makers, and
expected weaker conditions to continue due to a sluggish global
Analysts expect profits to shrink further in the current
quarter as DRAM prices continue to remain depressed, with
lackluster demand set to force some chipmakers to cut
Contract prices of commodity dynamic random access memory
(DRAM) chips declined more than 7 percent in the first half of
July alone, and are set to slide further, posing a downside risk
to chipmakers' third-quarter earnings.
"Demand growth is likely to be weaker than usual in the
third quarter, as customers are delaying purchases due to slow
global economic growth," Hynix said in its earnings statement.
The South Korean firm expected its DRAM shipments would grow
by a high teen percent in the third quarter and shipment of NAND
chips, used in handsets and tablets, to grow by around 20
Hynix, which competes with sector leader Samsung Electronics
Co and Japan's Toshiba Corp , reported a
April-June operating profit of 447 billion won ($424 million),
versus analysts' consensus estimate of 431 billion won,
according to Thomson Reuters I/B/E/S.
The profit more than halved from a year ago's 1.0 trillion
won but rose 38 percent from the previous quarter.
Shipment of DRAM chips stayed unchanged in the second
quarter, missing its previous forecast of low single digit
The usual seasonal demand upturn in the second half is
likely to be subdued, as PC makers have failed to reduce
higher-than-normal inventory levels amid weak consumer demand
after they inflated stocks sharply following the March
earthquake in Japan.
Global PC shipments, which in recent years grew by double
digits annually barring 2009 and serve as a key growth driver of
the memory chip industry, are set to expand by only 5 percent
this year as consumers opt for popular tablets and smartphones.
Hynix shares fell 29 percent over the past three months in a
steady wider market , hit by concerns about a slow
recovery of depressed memory chip demand.
The stock rose 1.7 percent minutes after the market open
versus a 0.1 percent fall in the wider market .
Its shares may stage a rebound as SK Telecom Co
and shipbuilding-to-shipping group STX Corp are
vying for a $2.3 billion stake in the firm offered by
The potential deal, if successful, will end years of a
failure by creditors to find a new shareholder for Hynix and
help the chipmaker make aggressive investments to stay ahead in
the volatile chip industry.
($1 = 1055.250 Korean Won)
(Editing by Jonathan Hopfner)