Dutch group ASML slashes forecast

THE NETHERLANDS - Dutch computer chip manufacturer and global high technology bellwether ASML slashed its forecasts for the next six months despite almost doubling profits in the first quarter.

Microchip machine manufacturer ASML has cut its profit and revenue forecast for the next six months. Image: I-Micronews

Net profits were up from €96m a year ago to €249m on increased sales worth €1.4bn.

The company which supplies chip-manufacturing machines to global manufacturers such as Samsung and Intel cut its forecast for the first half of 2014, after some customers cancelled order for the machines until they had designed the chips the generation of electronic devices.

"The unnamed customers want to complete development of their new chips before buying more chip-manufacturing machines," an ASML spokesman said.

ASML said it expected first-half sales to reach €3bn excluding sales of Extreme Ultraviolet (EUV) systems for making next-generation processors.

But now the company has reduced its first-half forecast to three billion euros including EUV system sales.

ASML is one of the world's leading manufacturers of lithography systems used by semi-conductor manufacturers to make integrated circuits and microchips.

The company, which employs over 13,000 people and operates in 16 countries, is considered a reliable indicator of conditions in the micro-processing field.

Source: AFP via I-Net Bridge