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TDK Media Sales Drop 17.2%

4/27/2005 01:15:00 PM Eastern

Tokyo — Fiscal-year sales for the recording media and systems segment at TDK dropped 17.2 percent to $1.1 billion, down from $1.3 billion in the year-ago period.

Sales of audio and video tape declined year-on-year, with market demand declining for these products as a whole. Sales of optical media, however, increased for the year, with higher DVD sales volumes offsetting a sharp fall in prices of DVDs and lower CD-R sales.

Decreasing sales in the recording media and systems segment for the 12 months were adversely affected by the higher yen vs. the U.S. dollar, impacting sales to the Americas, said TDK.

Lower sales are forecast for the recording media segment, with sales of audio and video tape expected to decline in line with falling demand. Increases in sales of optical media products are expected, but this growth is not likely to fully offset the decline in sales of audio and video tape.

TDK said it plans to implement strategies to counter falling DVD sales prices, one factor behind the deterioration in certain earnings areas, as well as push ahead with ongoing structural reforms of production and sales divisions.

TDK did not break out fourth-quarter figures for either specific business segments or consolidated numbers.

For the 12 months, ending March 31, sales in the Americas dropped 13.2 percent to $826.7 million, compared with $953 million in the same period the prior year. Operating income in the Americas, however, moved up 10.3 percent in the 12 months, to $51.9 million from $47.1 million.

Consolidated 12-month sales at TDK were essentially flat, at $6.21 billion, compared with a year-over-year $6.19 billion.

Consolidated operating income for the fiscal year rose 5.9 percent to $564.7 million, from $533.4 million the previous year. Net income also climbed in the 12 months, to $424.2 million from a year-on-year $397.4 million.