ASML returns to profit in third quarter, orders up

Oct 14, 2009

(AP) -- ASML Holding NV, a key supplier to computer chip makers, reported Wednesday a net profit of euro20 million ($29.7 million) for the third quarter, ending a nine-month streak of losses, and said new orders had increased sharply.

The company, which supplies tools to Intel and Samsung, had euro73.3 million in net profit in the third quarter a year ago, before chipmakers halted investments in new capacity in the face of the economic downturn.

ASML's third quarter sales were euro555 million, down 20 percent from euro696 million a year earlier. However, sales doubled from euro277 million in the second quarter of 2009.

New orders were also nearly twice their second quarter levels, Chief Executive Eric Meurice said in a statement, and the company's order backlog rose to euro1.35 billion from euro1.06 billion.

He said that chipmakers were buying equipment with an eye to specific new chip launches, rather than increasing capacity overall.

The company forecast that given the time lag between orders and delivery, ASML sales will be flat next quarter, then rise significantly in the first half of 2010.

"This substantial order increase does not factor in a full worldwide economic recovery which, if it materializes, could sustain the first-half sales level into the second half of 2010," Meurice said.

Shares rose 1.1 percent to euro21.855 in early Amsterdam trading.

Analyst Eric de Graaf of Petercam Bank said the results were slightly better than expected, but repeated a "Sell" advice on the shares.

ASML's share price is "less than 10 percent below its previous peak in late 2007," he said in a note on the earnings. "Unfortunately, we believe the associated profits are still years away."

ASML is the biggest seller of lithography systems, machines central to the process of making the circuitry of semiconductor chips.

©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Explore further: China's Alibaba plans IPO for week of September 8

add to favorites email to friend print save as pdf

Related Stories

'Collapse' in semiconductor demand hits ASML

Jul 15, 2009

Dutch computer chip equipment maker ASML announced net losses for the first quarter after a collapse in sales, but said it saw signs of improving market conditions.

'Collapse' in semiconductor demand hits ASML

Apr 15, 2009

Dutch computer chip equipment maker ASML on Wednesday announced net losses for the first quarter after a collapse in sales, but said it saw signs of improving market conditions.

Philips posts surprise profit as cost cuts help

Oct 12, 2009

Dutch electronics giant Philips reported on Monday a surprise profit for the third quarter as a series of cost cutting measures to cope with the global slump helped the bottomline.

SAP posts better-than-expected net profit

Jul 29, 2009

SAP, the German professional software giant, posted a better than expected second quarter profit on Wednesday, and said it would maintain tight cost controls for the remainder of the year.

Lenovo reports losses as sales plummet (Update)

May 21, 2009

China's Lenovo, the world's fourth largest maker of personal computers, Thursday reported a net loss of 226.4 million US dollars in the 2008-09 fiscal year citing structural changes and weak sales.

Recommended for you

China's Alibaba plans IPO for week of September 8

17 hours ago

Chinese e-commerce giant Alibaba plans to hold its initial public offering on the US stock market the week of September 8, the Wall Street Journal reported Saturday, citing a person familiar with the matter.

Tablet sales slow as PCs find footing

17 hours ago

Tablets won't eclipse personal computers as fast as once thought, according to studies by market tracker International Data Corporation (IDC).

Chinese e-commerce rivals challenge Alibaba (Update)

Aug 29, 2014

China's biggest property developer, Wanda Group, and Internet giants Baidu and Tencent unveiled a new e-commerce venture Friday in a challenge to industry leader Alibaba Group ahead of its U.S. stock offering.

User comments : 0