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Dutch ASML posts €88 million fourth quarter loss

Dutch ASML posts €88 million fourth quarter loss

ASML Holding NV, a key supplier to Intel Corp. and other computer chip makers, reported a net loss for the fourth quarter due to restructuring charges and weak demand for its products.
Net loss was €88 million ($116 million), compared to a net profit of €173 million in the same period a year ago. The figure includes a restructuring charge of €138 million after the company announced plans in December to cut 1,000 jobs, around 10 percent of its work force.
Sales were €494 million, down 48 percent, and the company's outlook for 2009 was grim.
"The severity of the global economic downturn has caused semiconductor manufacturers to delay their investment plans," Chief Executive Eric Meurice said in a statement.
"The uncertainty as to the timing of a semiconductor end-product demand pick up...makes a recovery prediction impossible."
ASML makes lithography systems, the machines used to map out the circuitry of semiconductors. Customers include Intel, Samsung Electronics Co. Ltd. and Taiwan Semiconductor Manufacturing Co. Ltd., while its main competitors are Nikon Corp. and Canon Inc. of Japan.
The company had just €127 million worth of new orders in the fourth quarter, but its backlog of orders - some already delayed from earlier quarters - is €755 million.
"Low fourth quarter bookings...were the result of a virtual freeze in capital expenditure by most customers, due to declining utilization rates and the inability of some customers to finance" purchases, ASML said.
ASML said its current restructuring would save around €50 million per quarter and it expected to have positive cash flow from operations in the first quarter.


Updated : 2021-05-18 23:36 GMT+08:00