First-quarter bookings fall sharply at ASML

17th Apr 2024 10:29

(Sharecast News) - Shares in ASML Holding came under pressure on Wednesday, after the chip industry giant disappointed with its first-quarter trading update.

The Dutch firm, the leading supplier of manufacturing equipment to the semiconductor industry, saw total net sales slide to €5.3bn from €7.2bn in the previous quarter, in line with company guidance.

However, net bookings fell sharply, to €3.6bn from €9.2bn, well below analyst expectations for bookings of more than €5bn.

Net income was also down, falling to €1.2bn from £2bn.

As at 1100 BST, shares in the firm were down 4%, having fallen as much as 6% earlier in the session.

The tech giant has been hit by a slowdown across the semiconductor industry as well as US-driven sanctions against China.

However, the firm - which forecast second-quarter sales of between €5.7bn and €6.2bn - left its outlook for the full year unchanged.

Outgoing chief executive Peter Wennink said: "Our outlook for the full year 2024 is unchanged, with the second half expected to be stronger than the first, in line with the industry's continued recovery from the downturn.

"We see 2024 as a transition year with continued investments in both capacity ramp and technology, to be ready for the turn in the cycle."

Wennink, 66, announced last November that he would step down this month, after more than a decade at the helm.

He will be replaced by chief business officer Christophe Fouquet.