(AOF) – The equipment manufacturer for the semiconductor sector Applied Materials presented disappointing accounts and outlook, penalized by supply constraints. In the second quarter, which ended in early May, the group recorded a 15% increase in its net profit to 1.54 billion dollars, or 1.74 dollars per share. Earnings per share excluding exceptional items stood at $1.85 against a Bloomberg consensus of $1.91.
Revenue increased by 12% to reach the level of 6.245 billion dollars while the market expected 6.36 billion dollars. Applied Materials was targeting 6.35 billion.
“Demand for Applied Materials’ products and services has never been stronger, yet we remain constrained by ongoing supply chain issues,” CEO Gary Dickerson said. “Our priority is to work quickly and creatively across the entire supply chain to bring more industrial capacity online, while accelerating the technology inflections that we believe will enable Applied to outpace the semiconductor market in the coming years.”
Applied Materials will continue to suffer from supply constraints. In the current quarter, the group is targeting adjusted earnings per share between 1.59 and 1.95 dollars for revenues of 6.25 billion dollars on average. Wall Street anticipates respectively 2.05 dollars and 6.69 billion dollars.
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Japan’s strong ambitions
The Japanese government is seeking to revitalize its electronic chip industry, with the objective of tripling turnover in 2030 compared to 2020. The Japanese sector would then represent the equivalent of 100.3 billion euros, in a market rapidly growing worldwide. The SIA (Semiconductor Industry Association) considers that Japan represented only 10% of world production last year, behind the United States (47%) and South Korea (19%). However, the country dominated the world chip market with 51% of production at the end of the 1980s. The Taiwanese TSMC has already chosen to create a 7 billion dollar factory in Japan, in partnership with Sony. Half of it should be financed by public subsidies.
The growth niches of electrical equipment manufacturers
Legrand and Schneider Electric have been able to seize opportunities related to environmental concerns. Legrand has focused on innovation and external growth. It recently announced two acquisitions, one in the Netherlands, the other in Finland. These two operations will enable it to expand its solutions for recharging electric vehicles and strengthen its positions in promising segments thanks to the rise in importance of green mobility and the fight against climate change. As for Schneider Electric, its positioning, focused on connected equipment, services, and electrical efficiency, supports its performance. It will continue on this path, convinced that all its markets will accelerate in the next three years.