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ASML's Profit Improves Due To Record Bookings In The Semiconductor Industry

ASML's Profit Improves Due To Record Bookings In The Semiconductor Industry
ASML Holding NV reported increased second-quarter net profit on Wednesday on record new bookings as it continued to deploy equipment to clients as quickly as possible despite signs of a downturn in consumer markets.
The Dutch firm, a key supplier to computer chip makers, posted a net profit of 1.41 billion euros ($1.44 billion) for the three months ending June 30, up from a profit of 1.04 billion euros the previous year, according to a statement.
Revenues increased from 4.0 billion euros in the same quarter of 2021 to 5.43 billion euros.
According to Refinitiv statistics, revenues exceeded analysts' expectations of 5.28 billion euros, while earnings fell short of expectations of 1.44 billion euros.
ASML said increased inflation costs impacted margins, and earnings were harmed by delayed revenue recognition for some systems it was rushing out to customers before they had been completely tested in the Netherlands.
ASML dominates the market for lithography systems, which are massive machines that use light beams to produce computer chip circuits. All major chipmakers are customers, with TSMC, Samsung, and Intel being the largest.
"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.
The quarter's net bookings were a record 8.46 billion euros.
Each of ASML's most advanced systems costs around $160 million and takes about 18 months to manufacture. It has been running at full capacity for several years.
The company stated that it plans to inform markets later this year on the potential of considerably increasing its production by 2025.
It stated that it projected around 1.8 billion euros in 2022 sales to be pushed out to 2023 owing to the quick shipment programme, implying that sales growth in 2022 would be about 10 per cent, down from an earlier projection of 20 per cent.
ASML shares have fallen 31 per cent this year to 484.80 euros.

Christopher J. Mitchell

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