Western Digital cut 80 jobs at its Fremont, Calif.,...

ended its fiscal 2012 ended June 29 with 103,111 employees. Western Digital has been restructuring its operations since acquiring Hitachi’s hard drive business earlier this year. Meanwhile, Western Digital incurred $235 million in losses in fiscal 2012 tied to the floods at its Thailand plant last October, the company said in its 10-K filing with the SEC. The losses were partly offset by $21 million in insurance recoveries and other cost reimbursements, resulting in a $214 million charge. Western Digital’s fiscal 2012 gross profit margin improved to 29.2 percent from 18.8 percent due largely to an increase in the average selling price (ASP) for hard drives to $62 from $45, the company said. The jump in ASPs was tied to the flooding, which created a drive shortage. The higher gross profit margin was offset by $91 million in costs on the sale on inventory stemming from its acquisition of Hitachi’s drive business. Western Digital had a slider fabrication and one-million-square-foot hard drive assembly plant in Bang Pa-In, Thailand, at the time of the flooding that accounted for 60 percent of its supply. The plant resumed production in March. Western Digital added hard drive manufacturing with the Hitachi purchase and has facilities in Shenzhen, China; Johor, Malaysia; and Chonburi, Thailand. Western Digital also has a hard drive recording head supply agreement with TDK’s SAE Magnetics that started in fiscal Q3 and runs through late 2013, the company said. Meanwhile, Western’s fiscal 2012 revenue rose 31 percent to $12.5 billion with Hitachi’s business contributing $3.1 billion sales, the company said. CE product and branded hard drives accounted for 19 percent of sales, down from 27 percent a year earlier. Net income improved to $1.6 billion from $726 million. Under a condition of the Hitachi purchase required by China’s Commerce Ministry, Western must keep Hitachi as an independent competitor for at least two years, Western said. Western is awaiting a decision by the Hennepin County, Minn., District Court on its request that a $630.4 million arbitration award against it be vacated, the company said. Western filed the petition with the district court in January. Rival Seagate was awarded $525 million along with $105.4 million in pre-award interest after a federal arbiter found Western misappropriated trade secrets. The award stemmed from claims brought in Hennepin County District Court against Western and one employee in October 2006. The suit switched to an arbitration case in 2007. Western doesn’t believe the arbiter’s award will be upheld and hasn’t recorded any liability for it other than the $25 million previously accrued, the company said.