TDK: Fiscal 4Q24 Financial Results

TDK Corp. announced its financial results for 4FQ24 and FY24 ended March 31, 2024.

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

For this segment, sales decreased by 8.2% Y/Y from ¥200,573 million to ¥184,211 million (9% of global revenue) in FY24, and increased 20% from ¥43,286 million in 4FQ23 to ¥51,857 million (11% of total sales) in 4FQ24. Sales of HDD heads and HSAs decreased to the ICT market. Sales of magnets decreased mainly to the industrial equipment market.

While sales of HDD heads and HDD HSAs decreased due to a sluggish demand in the HDD market, there have been signs of recovery since 3FQ24 and profitability improved, reflecting benefits from restructuring.

HDD heads and HDD HSAs continued to experience weakness in demand for HDDs. The sales volume of both products decreased significantly compared to the previous year, with total HDD demand decreasing 23% Y/Y and total nearline HDD demand decreasing 30%. As a result, sales continued to decline, and the operating loss increased.

Analyst firm Trendfocus estimates in 1Q24 at 15.5% the WW market share of SAE/TDK in recording heads, the only independent manufacturer, behind Seagate at 39.0% and WD at 45.5% using this component to assemble their own HDDs.

SAE Magnetics (HK) Ltd., a TDK group company, was established and headquartered in Hong Kong in 1980, and acquired by TDK in 1986, being the only independent manufacturer of magnetic recording heads today serving the HDD industry.