(AOF) – The equipment manufacturer for the semiconductor sector ASML revealed disappointing order intake in the first quarter. Over this period, the European technology firm generated net profit down 37.4% to 1.22 billion euros. Operating profit fell to 1.392 billion euros from 2.2 billion, a margin of 26.3%, down 6.4 points. It was expected at 1.275 billion euros.
Over the same period, ASML’s revenues fell 21.6% to 5.29 billion euros, while the market was targeting $5.42 billion.
On the commercial front, the European technology group recorded 3.61 billion euros in orders, compared to 63.75 billion euros a year earlier. The consensus was 5.1 billion euros. Of the total ordered, 656 million euros corresponded to state-of-the-art EUV (extreme ultraviolet lithography technology) systems.
In the second quarter, ASML is targeting sales between $5.7 and $6.2 billion for a gross margin between 50% and 51%. 2024 revenues are expected to be similar to 2023, with a slightly lower gross margin: 51.3% last year.
CEO Peter Wennink called 2024 a year of transition.
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Growing market and price tensions
According to SIA, global chip sales stood at $151.7 billion in the first quarter of 2022, an increase of 23% year-on-year. Sales increased in all major regional markets and for all product categories. As global uncertainties, including the war in Ukraine and the health crisis, weigh on supply chains, demand for semiconductors continues to significantly exceed supply. Manufacturers Samsung and TSMC have announced that they will raise their prices, in a context where players in the sector have good room for maneuver and benefit from reinforced negotiating power. However, wage increases and component prices could weigh on future performance.