ASMPT 3Q11 result

ASMPT reported net profit was $361.2mn, down 57.4%yoy or down 53.5%qoq, in 3Q11. Revenue fell 23.2%qoq to US$391.4mn due to the 41.6%qoq decline of assembly and packaging equipment sales. ASM has received more order push-out requests for its A&P equipment, as its customers are cutting their CAPEX plans.

SMT Equipment is improving while leadframe remains loss. SMT equipment recorded a revenue growth in 3Q11 on quarterly basis, up 4.2%, with GPM improved slightly to 27.8% from 27.2% but remained below the existing business level (~43%). EBIT margin of SMT equipment business was 18.3% higher than 14% in 9M11. The leadframe business continued to incur losses with revenue dropped 13%yoy on weakened demand amid the industry inventory build-up.

The mgmt expect the sales in 4Q11 will decline sequentially as seasonality factor and the downturn will at least last till 1Q12. Order backlog dropped 17% qoq with book to bill ratio at 0.83 as at end-3Q11, also suggesting a weaker 4Q11.