Massive Q2 profits for ASML

ASML Source:Studio040

In the second quarter of 2023, ASML made a net profit of 1.9 billion euros. The chip machine maker recorded a turnover of 6.9 billion euros.

The outlook for the third quarter is also positive. The high-tech giant expects another turnover of between 6.5 and 7 billion euros in that period.

ASML also announces that it expects to spend around 1 billion euros on research and development in the third quarter. Over the whole of 2023, the company expects a net turnover growth of thirty percent compared to 2022. That the Veldhoven-based company is doing well is therefore putting it mildly.

One hundred Philips employees

This is also evident from the acquisition of a hundred Philips employees. Philips previously announced that it would cut its research department. The Financieel Dagblad reported on Wednesday that ASML recently hired at least a hundred Philips employees.

This is remarkable because ASML previously announced that it wanted to hire fewer people. On the other hand, hundreds of vacancies were still open at the company in the Netherlands alone then.

Market conditions

The slower growth was announced in the context of deteriorating market conditions. This is confirmed by ASML director Peter Wennink. “Our customers in various market segments are currently more cautious due to ongoing macroeconomic uncertainties,” says Wennink.

“As a result, we expect a later recovery of their markets – whether those markets will recover quickly or slowly is still unclear. However, we have a strong order book of around EUR 38 billion, and we have a good basis to deal with these short-term uncertainties,” says Wennink.

Buy back shares

In the second quarter, ASML bought back 500 million euros of its own shares. This provides a substantial boost to shareholders’ cash flows. Buying back shares increases the price of the shares, making shareholders richer on balance. Moreover, by buying back own shares, the shares – and therefore the company itself – become more valuable.

Source: Studio040 and ASML

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