WD's Shipments Drop 42% Due to Severe Flooding in Thailand

From X-bit Labs: Although Western Digital had to face hundreds of millions of dollars charges relative to Thailand flooding, the company remained profitable. Moreover, due to increased pricing of hard disk drives, its sales only dropped 19% amid 42% decline in unit shipments of HDDs.

On Monday, WD 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 December 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 Hitachi GST.

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. The company generated $378 million in cash from operations during the December quarter, ending with total cash and cash equivalents of $3.9 billion.

The hard drive maker also confirmed it has made significant additional progress to restore its manufacturing capacity following the recent flooding in Thailand. It has continued to ramp HDD production in Thailand and yesterday resumed slider production which had been suspended since October 10. WD reaffirmed that its manufacturing capacity will be back to pre-flood capabilities in the quarter ending September 2012.

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