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To: Robert Krauss who wrote (33191)	11/15/1999 9:32:00 PM
From: Henry Eichorszt	Read Replies (1) \| Respond to of 70976

Hyundai Elec in up to $50 bln chip, LCD deals By Yoo Choon-sik SEOUL, Nov 15 (Reuters) - South Korea's Hyundai Electronics Industries Co <00660.KS> has won or is negotiating for about $50 billion worth of contracts to supply computer chips and flat-panel displays, its president said on Monday. Kim Young-hwan told reporters the firm was talking with foreign firms over about $15 billion worth of dynamic random access memory (DRAM) chips and $3-5 billion worth of thin-film transistor liquid crystal displays. "About $15 billion worth of contracts are under negotiation (to sell DRAMs) and are expected to be concluded over the next two to three weeks," Kim said. If concluded, the deals would bring Hyundai's contracts this month up to $50 billion. It unveiled earlier in the day contracts worth $30 billion. FACTORED IN Investors took the announcement of the deals as a time to take profits, believing the news had already been factored in. Hyundai Electronics shares closed down 0.7 percent or 200 won at 28,200 won ($24.1). Hyundai said it has won the DRAM orders from four companies, three of which were International Business Machines Corp <IBM.N>, Compaq Computer Corp <CPQ.N> and Gateway Inc <GTW.N>. It did not specify the size of each order. Sliding prices since 1995 have forced many of the world's DRAM makers to exit the market or curtail spending on new capacity, creating a severe shortage in supply at a time when demand is rebounding. The shortage, which is also the case in the TFT liquid crystal display market, is forcing the world's major computer makers to look for stable long-term supply deals. Last month, Hyundai announced a $300 million deal to supply two million monitors, including flat panel displays, to U.S.-based Packard Bell NEC, which is 49 percent owned by Japan's NEC Corp <6701.T> and 13 percent by Groupe Bull <BULP.PA> of France. Another South Korean chipmaker, Samsung Electronics Co <05930.KS>, the world's largest TFT display maker, last month also announced a five-year, $8.5 billion contract for displays with Dell Computer Corp <DELL.O>. NET PROFIT SEEN Hyundai Electronics is the world's largest DRAM maker after it absorbed last month Hyundai Microelectronics Co, formerly LG Semicon Co, which it acquired from South Korea's LG Group 1/8LUGG.CN 3/8 this year for 2.56 trillion won ($2.2 billion). Kim said the company expected to turn to a net profit of around 300 billion won ($257 million) from a 145.1 billion won loss last year, largely owing to a recovery in semiconductors. Hyundai officials said its results would include earnings from Hyundai Microelectronics for the period after its absorption in October. Kim reiterated the company's pledge to meet the government requirement for it and other companies to cut debt-to-equity ratios below 200 percent. He said Hyundai's current debt ratio stood at about 350 percent. Kim said a deal with a group of Taiwanese companies to sell equity in its liquid crystal division should also help it reduce the ratio. ($1=1,169 won) 10:19 11-15-99 Copyright 1999 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. All active hyperlinks have been inserted by AOL.