WD dries off, doubles profits - PC Retail

WD dries off, doubles profits

Leading disk drive producer sees record results after recovering from severe flooding affects production plants
Author:
Publish date:
1-wd.jpg

Leading disk drive maker WD has announced record results for its 2012 fiscal year, despite suffering from two natural disasters.

The company produced revenues for the 2012 fiscal year of $12.5bn along with profits of $1.6bn.

Whilst shipping a smaller number of drives compared to the previous year, WD still managed to earn record profits, largely as a result of increased disk drive pricing due to flooding within Thailand.

Both of the company's production plants in the country were hit by flooding last year, which had a significant impact on its ability to meet customer demand for its products within the fourth quarter.

It has since recovered, and repositioned itself as the world's leading maker of hard drive's after overtaking rival Seagate.

Following its acquisition of Hitachi GST for $4.8bn - the largest-ever acquisition within the disk drive industry - WD shipped around 71 million units, approximately five million more than Seagate during the same time period.

“Fiscal 2012 was one of the most challenging and exciting years in our 42-year history. While responding to two major natural disasters and completing the largest acquisition in the history of the industry, we achieved year-over-year revenue growth of 31% and more than doubled earnings per share," said John Coyne, chief executive officer of WD.

Want to receive up-to-the-minute tech news straight to your inbox? Then click here to sign up for the completely free PCR Daily Digest and Newsflash email services. You can also follow PCR on Twitter and Facebook.

Related