Western Digital was hit hardest by the floods in Thailand as almost the entire production stood still for a long period of time. The high harddrive prices are still on the same level as before, which has resulted in a doubled revenue and nearly four-fold profit compared to last year.
Evidently the floods in Thailand and the catastrophe in Japan was the best thing that could happen to the harddrive industry? Seagate is presenting better numbers than expected, but also Western Digital surprise us with a super-quarter. The company had a revenue of 4.75 billion dollar during its fiscal Q4, which is almost double up from last year. The company profit rose with 375 percent, which resulted in 745 million dollar.
”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 per cent and more than doubled earnings per share,” John Coyne, CEO of Western Digital.
Even though the company was severely crippled by the floods the revenue increased for fiscal 2012, with 31 percent to 12.5 billion dollar while profit more than doubled to 1.6 billion dollar. The reason is simply because both Seagate and Western Digital have taken the opportunity to keep harddrive prices high. The lack of competing companies also means there is no rush to lower prices anytime soon.
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