To: Curlton Latts who wrote (24030 ) 1/19/2000 7:07:00 AM From: cluka Respond to of 25960
Dow Jones Online News, Jan 19, 2000 06:27 hrs Dutch Chip-Equipment Maker ASML Expected To Report Higher '99 Profit AMSTERDAM -(Dow Jones)- Semiconductor equipment maker ASM Lithography Holding NV is expected to report 1999 net profit between 66.7 million euros ($67.6 million) and 74.9 million euros Thursday, with a consensus estimate of EUR71.6 million, according to a survey of Dutch investment analysts. More significant than the profit figure, which is expected top the 62 million euros the company (ASMLF) earned in 1998, will be reports about the status of its order book, which is expected to be very strong."I wouldn't be surprised to hear that they've already sold out for all of 2000," said analyst Eric de Graaf of ING Barings. He said that ASML may be bumping up against the limits of its ability to produce the extremely precise machines it sells, which are used in the process of creating the microscopic interconnections on computer chips. "In the end, ASML is dependent on a number of suppliers for things like lenses, from Zeiss (privately-owned Carl Zeiss, of Germany)," De Graaf said. He said that ASML's reaching the limits of its capacity isn't purely negative, since its profit margins are likely to rise as a result. Analyst Henk van de Meent of the Nationale Investeringsbank said despite the stellar performance of ASML stock in 1999, he expects it to remain strong in 2000. He has a 12-month share price target of 132 euros. The shares closed Tuesday at 124.65 euros. ASML was the best-performing share last year among Dutch blue chips, gaining 266% to 109.60 euros amid increasing signs that the semiconductor industry is entering a boom and that ASML has gained market share from Japanese competitors Nikon Co. and Canon Inc. (CANNY). Doug Dunn, the former head of Philips' Semiconductor division, who assumed the role of chief executive Jan. 1, will make his first public appearance as CEO at a press conference after results are issued Thursday.