Hi-tech group ASML slashes forecast profit leap

Hi-tech group ASML slashes forecast profit leap
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Summary Net profits were up to 249 million euros ($344 million) from 96 million euros a year earlier.

THE HAGUE (AFP) - Dutch computer chip maker and global hi-tech bellwether ASML slashed its forcecasts despite almost doubling profits in the first quarter.

Net profits were up to 249 million euros ($344 million) from 96 million euros a year earlier, largely thanks to sales that were up 57 percent to 1.4 billion euros.

The company which supplies global hi-tech giants such as Samsung and Intel nevertheless cut its forecast for the first half of 2014, after some customers put orders for processor makers for "next-generation devices" on hold.

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

ASML had said it expected first-half sales to reach three billion euros excluding sales of Extreme Ultraviolet (EUV) systems for making next-generation processors.

But on Wednesday the company said it had cut its first-half forecast to three billion euros including EUV system sales.

ASML is one of the world s leading makers of lithography systems used by the semiconductor industry to make integrated circuits and microchips

The company, which employs over 13,000 people and operates in 16 countries, is considered a good indicator of conditions in the microprocessing industry.
 

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