“The expected impact of a fire on part of a building at our Berlin site is included in the 2022 development forecast”, said ASML Chief Executive Peter Weinink.
ASML forecast sales growth of 20% in 2022 despite a fire this month at its Berlin plant as the chipmaker’s supplier on Wednesday expected better fourth-quarter profits.
Europe’s largest technology company by market capitalization said the January 3 fire had damaged one part of a building and another smoke damage.
“The expected impact of a fire on part of a building at our Berlin site is included in the 2022 development forecast”, said ASML Chief Executive Peter Weinink.
A preliminary assessment on 7 January stated that shipments of ASML’s DUV products would not be affected, but left open the possibility that EUV shipments could be affected as the facility in Berlin manufactured a part required for the system.
“Based on our current insights, we are confident that we can manage the consequences of this fire for 2022 without a significant impact on our system output,” Weinink said in a statement.
ASML is looking to expand production as its customers, which include TSMC, Samsung Intel, invest heavily in new capacity to reduce the global semiconductor shortage.
According to Refinitiv data, the Dutch company said its fourth-quarter net profit stood at 1.77 billion euros ($2 billion), up from an average of 1.51 billion euros by analysts and up from 1.35 billion euros a year earlier.
The improvement in earnings was the result of a better than expected margin of 54.2%, as sales of 5 billion euros fell slightly below analyst estimates of 5.1 billion euros.
ASML said it would continue to struggle to meet demand this year, and forecast first-quarter sales of €3.3-3.5 billion.
It added that the lower numbers are among the few systems shipped to customers before final testing, meaning that €2 billion in additional revenue will be recognized in future quarters.
“Demand is cited as ‘unprecedented’,” Citi analysts said in a note. “Remarks surrounding delayed revenue recognition and demand point towards upwards of 2023 consensus revenue forecasts,” it said. Citi gives ASML a buyout rate.
In September, ASML said it was benefiting from long-term trends in the electronics industry and expected double-digit annual sales growth throughout the 2020s.
The company also said on Wednesday that it would double its 2021 dividend to 5.50 euros and has received the first order from Intel for a new machine that is still under development.
ASML investors were shocked in early 2022, when the company caught fire at a Berlin factory.
0 notes
Shares of the Veldhoven, Netherlands-based company, which quadrupled in 2018-2021, are down 9% so far this year, but rose 0.3% to 643.2 euros as of 0841 GMT on Wednesday.
for the latest auto news And ReviewFollow carandbike.com Twitter, Facebook, and subscribe to our youtube Channel.
,