[Asia Economy Reporter Kwon Jae-hee] SK Hynix announced on the 1st that its operating loss in the fourth quarter of last year was 1.7012 trillion won, turning to a deficit compared to the same period last year (operating profit of 4.2195 trillion won).
This is the first time SK Hynix has turned to a loss in 10 years since the third quarter of 2012.
This is due to a sharp decline in memory demand and product prices caused by weak demand for PCs and smartphones.
According to the Financial Supervisory Service's electronic disclosure system on the 1st, fourth-quarter sales and net loss were 7.6986 trillion won and 3.5235 trillion won, respectively, with sales decreasing by 37.8% compared to the same period last year, and net profit turning to a loss.
Sales and operating loss were even lower than the estimates by financial information provider FnGuide, which projected sales of 8.5473 trillion won and an operating loss of 310.3 billion won.
On a consolidated basis, last year's operating profit was preliminarily estimated at 7.0066 trillion won, down 43.5% from the previous year.
On a consolidated basis, last year's sales were 44.6481 trillion won, and net profit was 2.4389 trillion won, up 3.8% and down 74.6% respectively compared to the previous year.
SK Hynix stated, "Although sales growth continued last year, operating profit decreased compared to the previous year due to the semiconductor downturn continuing from the second half. As uncertainty in the business environment increases, the company is reducing investments and costs and focusing on high-growth markets to minimize the impact of the downturn."
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