Hynix Tops Earnings Forecast as Chip Prices Rally

Jung Yeon-Je | AFP | Getty Images

South Korea's SK Hynix posted its second straight quarter of profit as computer memory chip prices rallied because of slower supply growth.

Hynix, which competes with bigger rival Samsung, Japan's Toshiba and U.S.-based Micron Technology, reported 317 billion won ($282.8 million) in operating profit for January-March, versus a loss of 264 billion won a year ago.

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The earnings, which also mark a sharp improvement from the previous quarter's 55 billion won profit, beat analysts' average forecast of a 205 billion won profit.

Commodity dynamic random access memory (DRAM) prices have jumped 61 percent so far this year in the spot market as suppliers curtailed output amid an uncertain global economic outlook.

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Suppliers also converted some of their capacity for production of more profitable chips used in smartphones and tablets instead.