Applied Materials Tumbles After China Woes Weigh on Forecast

Applied Materials Inc., the largest American disintegration manufacturer, dived in late trade after giving a disappointing sales and profit estimation, and renewed the concerns that the trade dispute with the United States had been weighed on demand.

The company said on Thursday that income would be about 6.7 billion dollars in the fourth quarter of financial income. Analysts had an average an average of 7.32 billion dollars. Compared to a projection of $ 2.38, the profit will be about $ 2.11, except for some items.

In an interview, the Chairman of the Executive Board Gary Dickerson said the company has received less demand than customers in China. It also faces delays in exporting technology to that country. In addition, large customers postpone some purchases in the face of long -term negotiations around tariffs and other economic issues.

“It only creates a level of uncertainty, Dic Dickerson said.

The view sent the shares of the applied materials up to 12%. They closed the report this year by closing at $ 188.24 on Thursday and increased by 16%.

In the third quarter, which ended on July 27, the income increased by 7.7% to $ 7.3 billion. According to data compiled by Bloomberg, analysts had waited an average of $ 7.21 billion. The share was $ 2.48 compared to a $ 2.36 estimation.

Applied Materials Customer Ranking, Taiwan Semiconductor Manufacturing Co., Samsung Electronics Co. and contains some of the biggest names in the chip industry, such as Intel Corp. These manufacturers, in front of starting production in front of the gear, allowing applied materials to make a barometer for future demand.

Last week, an Apple Inc. will participate in the plan to increase production in the United States by spending more than $ 200 million on a facility in Arizona. Applied materials will also sell equipment to Texas Instruments Inc.’s US factories to support Apple products.

Bloomberg Intelligence Analyst Masahiro Wakasi said in a note that “Apple materials can strengthen the position of Apple’s ‘American Production Program’ nuclear member, the impulse of increasing factory production in the United States as a key supply for advanced semiconductors used in iPhone.

“The new administration is very focused on increasing its semiconductor supply in the United States, Dic said Dickerson on Thursday. “We are very positive.”

In July, the rival Lam Research Corp. said that the quarter income that ended in December would relax from the current quarter levels and will potentially scale Chinese customers after the spending madness.

In another sign of US-China tensions, Applied Materials recently Beijing E-town Semiconductor Technology Co. it was sued on what this company was described as theft of secret secrets.

Nevertheless, Dickerson said that the long -term demand appearance is strong for the information processing power. Customers in China have significantly increased acquisition in recent years, and now they are only digesting these purchases.

This article was created from an automatic news agency feeding without changing the text.