A warning from Dutch chipmaker

ASM Lithography

(ASML) - Get Report

Friday sent European markets tumbling.

ASM said sales in 2001 would be 10% to 25% below those of 2000 and that demand does not even equal production capacity. The company said it has responded with a hiring freeze.

The announcement helped send the U.K.'s

FTSE 100

down 132 to 5597, a loss of 2.3%. In Germany, the

Xetra Dax

was down 96 to 5794. Things were a little better in France, but the

CAC 40

still lost 33 to 5145.

In pre-open trading in on

Instinet

in the U.S., ASM fell $2, or 8.7%, from its Thursday closing price of $23.