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Earnings Roundup / Western Digital

Layoff costs cut into bottom line

January 29, 2009|From Times Wire Reports

Western Digital Corp. said its fiscal second-quarter profit plunged but beat Wall Street's expectations, as the maker of computer hard drives recorded a $113-million charge from plans to cut 2,500 jobs.

Western Digital posted a profit of $14 million, or 6 cents a share, for the three months ended Dec. 26, compared with a profit of $305 million, or $1.35, a year earlier.

Excluding the $113-million restructuring charge and a related $4-million tax benefit, Western Digital's profit in the latest quarter was $123 million, or 55 cents a share.

Analysts surveyed by Thomson Reuters, whose estimates typically exclude one-time items, had forecast a profit of 31 cents a share.

Revenue fell 17% to $1.82 billion, beating analysts' estimate of nearly $1.75 billion.

Shares of the Lake Forest company rose 85 cents, or 6.3%, to close at $14.40. They added another 35 cents to $14.75 in after-hours activity.

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