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AMSTERDAM, Jan 22 (Reuters) - Dutch firm ASM Lithography
, the world's second largest producer of chip-making
wafer stepper machines, reported a 51 percent leap in net
profits on Thursday but expressed caution about Korean
customers.
ASML said its full year 1997 net profits had risen to 329
million guilders ($160.5 million) from 218 million in 1996, at
the upper end of analyst forecasts.
The profits included a 31.1 million guilder extraordinary
gain. Turnover grew 35 percent to 1.80 billion guilders from
1.33 billion in 1996.
The company said it had achieved the growth despite
difficulties in the semiconductor market towards the end of the
year largely resulting from the Asian financial crisis.
"We have achieved growth in a bad period," said chief
financial officer Gerard Verdonschot.
ASML success has followed increasing sales of its latest
'deep-UV' (DUV) wafer steppers, successor to the older I-line
models. In 1997, DUV accounted for about 35 percent of
deliveries. This year, ASML expects that to rise to 60 percent.
The newer DUV technology enables chip manufacturers to
produce more circuits per chip at a lower cost.
However, the firm said continued Asian problems meant it was
unable to give a clear forecast for 1998.
Of ASML's 1997 sales, 24 percent were in South Korea and 28
percent in Taiwan. In Taiwan, ASML expected no difficulties but
said its South Korean customers were facing increased hardships.
Nevertheless, chief executive officer Willem Maris did say
ASML would achieve double-digit sales growth.
"If South Korea turns sour, then it is a nuisance... but we
will still grow significantly.... that means by at least 10
percent. Sales will not fall," he said.
Maris stressed the 10 percent sales growth was a minimum.
"It could also go higher... Others could make up for the loss
(of South Korean business)... The Taiwanese, for example, could
take up the South Korean share."
In the medium term, ASML believed the wafer stepper market,
and its share of that market, would continue to expand.
Maris said ASML's 25 percent market share made it the
world's number two supplier of chip-making wafer stepper
machines, behind market leader Nikon but now ahead of Canon.
Significantly, he said, ASML was continuing to expand.
ASML's annual capacity at present is about 300-350 machines,
but it sees that rising to 400-450.
It spends 10-11 percent of sales on research and development
and is building a new research and development centre at its
base in Veldhoven for 1,300 people.
Analysts generally warmed to Thursday's news. Some even
suggested ASML was being overcautious in its comments about
South Korea given the size of its order book.
By the end of 1997, ASML still had to deliver 158 wafer
steppers, from 94 at the end of 1996, while new orders rose to
275 in 1997, from 126 in the previous year.
"Although Maris is cautious on 1998, the backlog of orders
is quite impressive... so I don't see a problem. Gaining market
share in this kind of a market is impressive. Everything looks
fine," said ING Baring's Eric de Graaf.
The stock market was less receptive. Most shares fell in
Amsterdam following Asian worries, but ASML, in which Philips
Electronics holds a minority stake, was one of the
heaviest fallers. |
