By Nick Turner - Nov 29, 2011 6:22 AM GMT+0700
Seagate Technology Plc (STX), the world’s largest maker of computer disk drives, forecast higher sales than analysts estimated, after the company withstood devastating flooding in Thailand better than rivals.
Seagate will ship 43 million units in the December quarter, generating about $2.8 billion in revenue, according to a statement today. Analysts had projected sales of $2.64 billion, based on data compiled by Bloomberg.
While the Thai floods will crimp supplies of disk-drive components, Seagate’s own factories in the country haven’t been affected by the disaster, the company said. Seagate’s two biggest competitors, Western Digital Corp. (WDC) and Toshiba Corp. (6502), both have major plants in the flood zone.
Seagate, based in Cupertino, California, rose as much as 10 percent to $17.60 in late trading after the report. It had climbed 5.5 percent to $15.99 at the close in New York.
Seagate expects the disk-drive industry to recover gradually from the flood over the course of 2012. In the March quarter, the company’s revenue will be about $3.75 billion, Seagate said. Analysts had projected $3.21 billion, according to Bloomberg.
To contact the reporter on this story: Nick Turner in San Francisco at nturner7@bloomberg.net
To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net
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