World highlights
11/01/1998
Worldwide highlights
August book-to-bill down to 0.6.
North American semiconductor equipment makers logged orders of just $631.5 million in August, half the level of six months earlier and almost 15% below July (see table). Companies shipped $1.06 billion worth of products. The resulting August book-to-bill ratio is just 0.6 - among the lowest ever recorded by SEMI.
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EPS estimates down for toolmakers.
Goldman, Sachs analyst Gunnar Miller reports that semiconductor equipment companies are seeing weaker-than-expected business for the 3Q, and has cut his earnings/share estimates for the group by an average of 10% for Q3, 11% for 1998 as a whole, and 13% for 1999. "Although glimmers of hope from semiconductor makers (National Semi and Intel) could give the semiconductor equipment stocks a near-term lift, the group is likely to remain under pressure until 1) semiconductor industry revenue improves, 2) DRAM supply/demand balances, and 3) capacity utilization catalysts emerge," said Miller.