March 7 – The U.S government is urging Japan, South Korea, Netherlands, Germany to further tighten curbs on China’s access to semiconductor technology, Bloomberg News reported on Wednesday.
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U.S urges its allies to tighten China’s access to chip technology, Bloomberg reports
The U.S. wants Japanese companies to limit exports to China of specialized chemicals required for chipmaking, including photoresist, the report said citing people familiar with the matter. Washington is also pressing the Netherlands to stop semiconductor equipment maker ASML from servicing and repairing chipmaking equipment for Chinese clients bought before limits on sales of those devices were put in place this year, a source familiar with the matter told Reuters, confirming part of the Bloomberg report.
Tokyo and The Hague want to assess the impact of their current curbs before considering tougher actions, the report said, adding that the U.S. Commerce Department officials raised the issue in Tokyo during a meeting on export controls last month. The Dutch foreign ministry declined to comment on the report, while the U.S. Commerce Department did not respond to a request for comment.
An official at Japan’s industry ministry said the ministry routinely discusses export controls with relevant countries. ASML could not be immediately reached for comment. American officials had earlier expressed particular concerns about China’s ability to employ advanced chips, and the powerful processors they enable, for its fast-growing military.
2024 Operating Margin Drops Target To 7.6% As Cost Rises Of Lufthansa
London/Frankfurt, March 7 – Lufthansa reported on Thursday an operating profit of 2.7 billion euros for 2023 as expected, adjusting its outlook for its 2024 operating margin down to 7.6% from a goal of 8% as the German airline struggles with costly labour disputes. The impact of strikes and a drop in logistics profits will lead to a higher expected operating loss in the first quarter than in earlier years, the company said, offsetting strong post-COVID travel demand.
“The group remains committed to its goal of generating a sustainable adjusted EBIT margin of at least 8 percent,” the company said in a statement. Europe’s airlines have benefited from unprecedented demand following the pandemic, allowing them to hike prices, but higher labour and maintenance costs have limited earnings growth.
Lufthansa in particular has agreed to new, higher pay deals to end strikes, which analysts and investors say threatens its 2024 operating margin target. On Wednesday, its cabin staff voted by a majority to go on strike as they seek a 15% wage hike, a potential harbinger of further profit erosion. The results come almost two weeks after the airline announced the surprise departure of respected Chief Financial Officer Remco Steenbergen, which knocked its share price and rattled investor confidence. Operating profits for 2023 were up from 1.23 billion euros in 2022. Revenues of 35.4 billion were lower than the 36.3 billion euros expected in a company-issued poll, compared with 32.7 billion in 2022.
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