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Emoji sadTDK: Fiscal 2Q24 Financial Results

Disk head and HSA maker victim of decreasing WW HDD market

TDK Corp. announced its financial results for 2FQ24 ended September 30, 2023.

2FQ24 is a bad period as expected, as was 1FQ24 because production of HDD declined, especially demand for nearline devices for data centers dropped sharply.

The Japanese company has several businesses including magnetic application products segment made up of HDD heads, HDD suspension assemblies (HSAs), and magnet sales.

Tdk F1

Sales and profit decreased Y/Y in this segment as sales to the HDD market remained significantly below the previous year’s level.

Especially sales of HDD heads and HSAs dropped considerably due to a significant Y/Y decline in the WW HDD market.

Revenue of this segment was ¥44,837 in 2FQ24 compared to ¥54,718 in 2FQ23 or -18%, with loss of ¥9,381 and ¥1,788 respectively.

Projections for the market:

  • Production of HDDs used in servers for data centers, which has dropped sharply in FY23, expected to pick up moderately
  • WW production of units as of November 2023: 123 million HDDs (-20%Y/Y), 40 million nearline HDDs (-27%)

Projections for TDK for 3FQ24:

  • Sales of disk heads expected to decrease slightly
  • Sales of HSAs expected to decline
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