Western Digital Earnings Fall Due To Thailand Flood
Shares of disk drive maker Western Digital (WDC) are up sharply this afteroon as the company reported fiscal Q2 revenue ahead of consensus and said that the company had made significant additional progress in its effort to restore drive manufacturing in Thailand, where massive floods devastated the electronics supply chain in the latter half of last year. The company reported a fiscal second-quarter profit of $145 million, or 61 cents a share, on revenue of $2 billion. During the same period a year ago, the hard-disk drive maker earned $225 million, or 96 cents a share, on $2.48 billion in sales. Western Digital earnings fell nearly 36%, but Western Digital would have earned $358 million, or $1.51 a share if the flooding didn’t take place.
Western Digital Corp.today reported revenue of $2.0 billion, hard-drive unit shipments of 28.5 million and net income of $145 million, or $0.61 per share, for its second fiscal quarter ended Dec. 30, 2011. Excluding charges and expenses related to the Thailand flooding and the planned acquisition of Hitachi Global Storage Technologies (HGST), non-GAAP net income was $358 million, or $1.51 per share. During the quarter, the company incurred charges and expenses of $199 million related to the flooding and expenses of $14 million associated with the planned acquisition of HGST. In the year-ago quarter, the company reported revenue of $2.5 billion, net income of $225 million, or $0.96 per share, and shipped 52.2 million hard drives.
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