Applied Materials Inc, the largest US maker of chip-manufacturing equipment, gave a lackluster forecast for the current period, highlighting the potential cost of the US trade dispute with China.
Sales would be about US$7.2 billion in the fiscal third quarter, plus or minus US$500 million, the company said in a statement on Thursday.
That was about in line with Wall Street estimates, although some analysts projected as much as US$7.4 billion. Profit would be about US$2.35 a share.
Photo: Reuters
Applied Materials and other chip-industry companies are adjusting to restrictions on sales to China, one of the biggest markets for their products.
The impact of tariffs imposed by Washington are also making it more difficult to project future revenue.
“There is more uncertainty in the market,” Applied Materials chief executive officer Gary Dickerson said in an interview.
“Despite that, the company is performing incredibly well,” he added.
Applied Materials shares fell more than 4 percent in extended trading following the announcement. They had earlier closed at US$174.75, leaving the stock up 7.5 percent for this year.
Applied Materials in February said rules adopted in the final months of former US president Joe Biden’s administration would knock about US$400 million off fiscal revenue for this year.
That is because Applied Materials would have to stop servicing equipment at some customer sites in China. However, technology export restrictions have continued to evolve under US President Donald Trump.
China accounted for 25 percent of Applied Materials sales previous quarter, down from 43 percent a year earlier.
Fiscal-second quarter profit was US$2.39 a share, excluding some items, compared with an analyst prediction estimate of US$2.31.
Revenue rose 7 percent to US$7.1 billion in the period, which ended on April 27, in line with estimates.
Demand remains strong for machines needed to make high-end processors for AI computing, but orders for less complex machinery used to make cars and industrial components have slowed, Dickerson said.
Applied Materials’ management has said that the industry is in a historic period of expansion. The rapid spread of semiconductors to new products and the AI boom would help maintain demand, Dickerson has said.
The sheer complexity of chips has also added pressure on customers to upgrade their equipment.
Applied Materials’ customer ranks include some of the biggest names in the chip industry, including Taiwan Semiconductor Manufacturing Co. (台積電) Samsung Electronics Co and Intel Corp.
Those manufacturers order gear well ahead of starting production, making Applied Materials’ forecasts a barometer for future demand.
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RECORD LOW: Global firms’ increased inventories, tariff disputes not yet impacting Taiwan and new graduates not yet entering the market contributed to the decrease Taiwan’s unemployment rate last month dropped to 3.3 percent, the lowest for the month in 25 years, as strong exports and resilient domestic demand boosted hiring across various sectors, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said yesterday. After seasonal adjustments, the jobless rate eased to 3.34 percent, the best performance in 24 years, suggesting a stable labor market, although a mild increase is expected with the graduation season from this month through August, the statistics agency said. “Potential shocks from tariff disputes between the US and China have yet to affect Taiwan’s job market,” Census Department Deputy Director Tan Wen-ling
As they zigzagged from one machine to another in the searing African sun, the workers were covered in black soot. However, the charcoal they were making is known as “green,” and backers hope it can save impoverished Chad from rampant deforestation. Chad, a vast, landlocked country of 19 million people perched at the crossroads of north and central Africa, is steadily turning to desert. It has lost more than 90 percent of its forest cover since the 1970s, hit by climate change and overexploitation of trees for household uses such as cooking, officials say. “Green charcoal” aims to protect what
RSS