AMSTERDAM (Reuters) - ASML Holding NV, a key supplier to computer chip makers, on Wednesday reported a near 58% jump in second-quarter profit but fell short of market estimates, and forecast overall growth for 2020 despite the coronavirus outbreak.
ASML’s net profit jumped to 751 million euros ($856 million) from 476 million euros in the same period a year earlier. Net sales rose to 3.33 billion euros from 2.57 billion euros.
Analysts had expected net profit of 860 million euros and revenue at 3.42 billion euros, according to Refinitiv data.
The company dominates the market for lithography systems, giant machines that cost up to 200 million euros each and are used by semiconductor manufacturers such as Samsung and Intel to help create the circuitry of computer chips.
ASML said that sales would have been in line if revenue from two systems that shipped had been recognised.
Chief Executive Officer Peter Wennink said in a statement the company is in a “privileged position” with an order backlog of worth more than 10 billion euros.
He said that while the coronavirus outbreak is hurting the global economy, demand in some sectors is stronger than ever, and said 2020 will be a growth year for the company.
“Data traffic is exploding,” he said. “That’s also what our customers are seeing. Significant investment in data centres, in working from home infrastructure.”
ASML forecast third-quarter sales between 3.6-3.8 billion euros. [A5N2C800K]
ASML’s market capitalization swelled to 150 billion euros in 2020 as shares rose by 30%, continuing a decade of growth despite the virus outbreak.
TSMC, ASML’s biggest customer, is planning a $12 billion plant in the United States, in light of U.S. government restrictions on trade with China.
ASML has been unable to ship its most advanced tools to native Chinese customers. Wennink said U.S. restrictions would not hurt ASML in the short or medium term.
($1 = 0.8777 euros)
Reporting by Toby Sterling; Editing by Shri Navaratnam and Shailesh Kuber