PREVIEW-ASML may boost sales outlook on chip demand

* Q2 results due July 14, 0500 GMT

* Q2 sales seen at 1 bln euros, net profit at 209 mln euros

* ASML sees 2010 sales higher than 3.8 bln euros

By Harro ten Wolde

AMSTERDAM, July 12 (BestGrowthStock) – Dutch chip equipment maker
ASML (ASML.AS: )(ASML.O: ) may raise its sales outlook as an upturn
in the chip sector continues, lifting sales of its machines for
mapping out circuits on silicon wafers and fuelling profit.

ASML is expected to post a net profit of 209 million euros
($263.3 million) on sales of 1 billion euros, according to the
average in a Reuters poll of 15 analysts. [ID:nLDE6681DN]

The Veldhoven-based company said in April it may beat record
annual sales of 3.8 billion euros this year, while expecting 1
billion euros in sales for the second quarter.

The value of new bookings during the second quarter are
expected to be in line with the 1 billion euros it booked during
the first quarter.

“This rising order backlog in our view will give ASML enough
confidence to raise its sales indication for 2010 from ‘above
the 2007 peak of 3.8 billion euros’ to about 4 billion euros,”
Philip Scholte at Rabo Securities said.

ASML is the world’s largest maker of semiconductor
lithography machines which map out electronic circuits on
silicon wafers and its order book is viewed as a barometer for
expectations from the big chipmakers.

It competes with Japan’s Nikon Corp (7731.T: ) and Canon Inc
(7751.T: ).

ASML’s customers include the world’s largest chip maker
Intel Corp (INTC.O: ), which will publish second-quarter results
on July 13.

Taiwan Semiconductor Manufacturing (2330.TW: ), the world’s
largest contract chip maker, and its smaller cross-town rival
United Microelectronics (2303.TW: ) last week reported higher
sales on strong demand for PC’s and other high-tech products.
[ID:nTOE668023] [ID:nTOE66603R]

Hopes for a higher sales outlook from ASML were also fuelled
by data from research firm Gartner, which predicted last month
that spending on semiconductor capital equipment would surge
this year to a higher-than-expected $35.4 billion.

This 113 percent jump from 2009 is driven by an increase in
demand for chips, which are used in smartphones such as the
iPhone and tablet computers, the researchers said.
[ID:nLDE65917V]

According to the average in Thomson Reuters StarMine
SmartEstimates, which predicts future earnings by putting more
weight on recent forecasts of top-rated analysts, ASML’s 2010
sales are seen at 3.99 billion euros.

Chances of a positive surprise are 0.7 percent, while six
out of 29 analysts have been upgrading ASML sales estimates in
the past 30 days by an average of 5.7 percent.
($1=.7939 Euro)
(Reporting by Harro ten Wolde; editing by Simon Jessop)

PREVIEW-ASML may boost sales outlook on chip demand