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TDK Optical Media Gains, Tape Falls Off

1/29/2004 01:01:00 PM Eastern

Tokyo — Optical media products posted higher third quarter sales as part of the recording media and systems segment at TDK.

But with sales of audio tape and videotape shrinking, as demand continues to slow due to decreasing sales of supporting hardware formats, the overall recording media segment saw three month sales edge downward less than 1 percent. Segment sales hit $371.2 million for the three months, ended Dec. 31, compared with $375.6 million in the year-ago period.

Optical media posted higher sales of blank CD-Rs and rewritable DVDs in an expanding market offset by lower product selling prices.

For the nine months, TDK recording-media segment sales also were off less than 1 percent, to $949.9 million, compared with $961.4 million in the same period in 2002.

With recording-media sales falling in the Americas, overall TDK sales to this region decreased by 12.4 percent in the third quarter, hitting $230.1 million, down from $265.4 million. Operating income in the Americas, however, climbed to $19.7 million in the third quarter, up from $3.3 million in the same period a year earlier.

Consolidated TDK sales in the third quarter jumped 12.5 percent, reaching $1.7 billion, up from $1.5 billion year-on-year. Operating income climbed to $169.5 million in the third quarter, from $58.2 million, while net income rose to $132.1 million, from $43.2 million.

 For the nine months, consolidated TDK sales rose 8.7 percent, to $4.7 billion, from $4.3 billion. Operating income for the period reached $394 million, from $152.7 million, while net income increased, to $312 million, from $87 million.