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Semiconductor equipment maker ASML profit rises on record bookings

Published 07/20/2022, 01:34 AM
Updated 07/20/2022, 02:26 AM
© Reuters. FILE PHOTO: ASML logo is seen in this illustration taken February 28, 2022. REUTERS/Dado Ruvic/Illustration
ASML
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AMSTERDAM (Reuters) -ASML Holding NV reported higher second-quarter net profit on Wednesday amid record new bookings as it kept shipping equipment to clients as fast as possible even though there were some indications of a slowdown in consumer markets.

The Dutch company, a key supplier to computer chip makers, reported net profit of 1.41 billion euros ($1.44 billion) for the three months ended June 30, up from profit of 1.04 billion euros a year earlier, it said in a statement.

Revenues were 5.43 billion euros, up from 4.0 billion euros in the same quarter of 2021.

Revenues beat analysts' estimates of 5.28 billion euros, according to Refinitiv data, while profit missed estimates of 1.44 billion euros.

ASML said margins were affected by higher inflation costs, and earnings were hit by delayed recognition of revenue for some systems it was rushing out to customers before they had been fully tested in the Netherlands.

ASML dominates the market for lithography systems, giant machines that use light beams to create the circuitry of computer chips. Customers include all major chipmakers, with TSMC, Samsung (KS:005930) and Intel (NASDAQ:INTC) the biggest.

"Some customers are indicating signs of slowing demand in certain consumer-driven market segments, yet we still see strong demand for our systems," Chief Executive Officer Peter Wennink said.

"While we are still planning to ship a record number of systems this year, increasing supply-chain constraints cause delayed starts," he said.

Net bookings in the quarter were 8.46 billion euros, a record.

ASML's most advanced systems cost about $160 million each and take 18 months to build. It has been operating at full capacity for several years

The company said it expected to update markets later this year on the feasibility of significantly expanding its production by 2025.

It said it expected about 1.8 billion euros worth of 2022 sales would be pushed out to 2023 due to the fast shipment programme, which means sales growth in 2022 would be about 10% down from an earlier estimate of 20%.

© Reuters. FILE PHOTO: ASML logo is seen in this illustration taken February 28, 2022. REUTERS/Dado Ruvic/Illustration

ASML shares are down 31% so far this year to 484.80 euros.

($1 = 0.9765 euros)

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