Asma (ASML. US): Berlin plant fire is not expected to seriously affect output This year sales are expected to increase by 20% year-on-year.

Zhitong Finance APP learned that the Dutch lithography machine giant ASML . US) on Wednesday reported better-than-expected fourth-quarter 2021 profit, and despite a fire at its Berlin plant this month, the company expects sales in 2022 to grow 20 percent year-over-year.

According to the financial report, under GAAP accounting standards, the company's Q4 net sales were 4.986 billion euros, an increase of 17.3% year-on-year; Net profit increased by 28.9% year-on-year to EUR 1,740 million. Basic earnings per share of common stock amounted to €4.39, compared to €3.23 for the same period last year.

Europe's largest tech company by market capitalization said the fire took place in one of its production buildings in Berlin and that the smoke affected part of a neighboring building.

Asmay CEO Peter Wennink said the 2022 growth forecast included "the expected impact of a fire in some of our Berlin factory buildings.".

In its preliminary assessment report on January 7, Asma said that the delivery of DUV products is not expected to be affected by the fire, but the delivery of EUV products may be affected due to the modules required for the production of EUV systems at the Berlin plant.

Wennink said in a statement that based on current information, "I believe we can handle this fire without having a significant impact on the output of the system in 2022." ”

Due to the inclusion of TSMC (TSM. US), Samsung and Intel (INTC. CUSTOMERS, INCLUDING US), ARE INVESTING HEAVILY IN NEW CAPACITY TO TRY TO ALLEVIATE THE GLOBAL SEMICONDUCTOR SUPPLY SHORTAGE, AND ASMA IS WORKING TO EXPAND PRODUCTION.

Asma said it will continue to work hard to meet demand this year and expects sales of 3.3-3.5 billion euros in the first quarter.

The company added that since some of the systems are delivered to customers before final testing, this means that additional revenue of 2 billion euros will be recognized in the coming quarters.

Asma also said wednesday it would double its 2021 dividend to 5.50 euros, and that it had received Intel's first order for a new machine that was still under development.

Last September, Asma said that benefiting from the long-term trend in the electronics industry, the company's revenue is expected to grow at a rate of about 11% per year by 2030.

Citi said demand was "unprecedented" and delayed revenue recognition and comments on demand suggested that Asma's revenue was generally expected to rise in 2023. Citi gives Asma "Buy" rating.