Chip supplier ASML slowed down by production bottlenecks

VELDHOVEN (dpa-AFX) – The chip supplier ASML (ASML NV) continues to struggle with production bottlenecks in view of the high demand. For the second quarter, the manufacturer of chip exposure machines forecast sales of 5.1 to 5.3 billion euros, which is significantly less than the analysts’ estimate of almost 6 billion euros. As in the previous quarter, net orders in the first quarter were around 7 billion euros, as the EuroStoxx 50 heavyweight (EURO STOXX 50) announced on Wednesday in Veldhoven, the Netherlands. “We see that the demand for our systems continues to be higher than our current production capacity,” said boss Peter Wennink.

The management left the sales forecast for the year as a whole at around 20 percent growth. However, the company announced a review of medium-term growth prospects for 2025 and beyond as it intends to invest heavily in building new capacity together with suppliers.

As expected, ASML posted sales of EUR 3.5 billion in the months from January to March, around 19 percent less than a year earlier. As promised, the gross margin was 49 percent. It indicates how much of the sales price remains after production costs and should be 49 to 50 percent in the second quarter. The bottom line is that ASML earned 695 million euros in the first three months. A year earlier it was still a good 1.3 billion euros./men/jha/