Fitch: Hynix profits continue

Fitch Ratings said it expects SK Hynix Inc.'s profitability to continue following a successful EBIT turnaround in the second quarter of 2012.

However, Fitch said it believes that margin recovery in that quarter will be limited as the operating environment remains tough.

After three consecutive quarters of operating losses, Hynix has finally returned to profitability mainly due to cost reduction and dynamic random access memory price increases since February 2012 following Elpida Inc.'s filing for bankruptcy protection, the agency said.

However, Fitch said it does not foresee any significant improvement in the industry cycle due to a weak economic environment and prevalent over-supply in both the DRAM and NAND markets.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.