* Seagate says running at capacity in Thailand
* Stock rises after hours
* Warns of supply chain constraints
By Noel Randewich
SAN FRANCISCO, Oct 20 Seagate Technology said its factories in Thailand were running full
capacity after widespread flooding, and its stock rose more
than 8 percent.
The company, which vies with Western Digital for
the title of world's largest maker of hard drives, added that
it was working with various component suppliers to rebuild its
"We expect to experience significant impacts to our
production levels, while our suppliers work to get their
businesses up and running," Chief Executive Stephen Luczo told
analysts on a conference call.
Still, Seagate expects to ship 40 million to 50 million
units in the December quarter, he said. That is almost double
Western Digital's estimate of 22 million to 26 million.
Western Digital said earlier this week it had extended the
suspension of its operations in Thailand -- which account for
an estimated 60 percent of its global output -- as floods
brought operations to a standstill.
Flooding in Thailand has killed at least 320 people since
July and devastated industrialized areas in the center of the
"Western digital's troubles seem to be far worse than
Seagate's, and Seagate is likely to gain share in the period
before Western Digital can recover," said ThinkEquity analyst
Seagate also posted quarterly earnings above Wall Street's
expectations. It shipped 51 million units in the quarter which
ended in September and its revenue rose 4.2 percent to $2.8
The company reported that net income for its first quarter
fell to $140 million from $149 million in the year ago period.
Earnings per share rose to 32 cents a share, on a lower number
of shares outstanding, from 31 cents a share a year ago.
Excluding items, the company earned 34 cents a share,
exceeding the 31 cents a share expected on average, according
to Thomson Reuters I/B/E/S.
Seagate's shares rose 8.6 percent to $13.10 in after hours
trading, after closing at $12.06 on the Nasdaq.