ASML: expects continued growth after 'solid' fourth-quarter

(CercleFinance.com) - Dutch chip equipment maker ASML said on Wednesday that it had a "strong" fourth quarter and that it expects solid growth to continue into 2018.


The world's largest maker of semiconductor lithography machines reported fourth-quarter net profit of 644 million euros, up 22% year-on-year, on sales that rose by 34% to 2.56 billion euros.

For the full year, ASML generated record sales and net income, at respectively 9.05 billion euros and 2.12 billion euros.

Most importantly, ASML's net bookings - an important indicator for the chip industry - rose to 9,358 units in 2017, versus 5,396 units in 2016.

CEO Peter Wennink said the firm's good momentum was helped by strong demand in areas such as personal electronics, artificial intelligence, cloud computing and mobility.

The Veldhoven-based company said it intends to launch a share buyback program of 2.5 billion euros for 2018-2019 and to propose a 17% increase in its dividend to 1.40 euro per share.

ASML shares rose 3.8% to 159.6 euros this morning in Amsterdam, outpacing a 0.3% rise in the STOXX Europe 600 Optimised Technology index.

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