TDK: Fiscal 2Q23 Financial Results

Magnetic application products segment

(in ¥ million)	2Q22	2Q23	6 mo. 22	6 mo. 23
Revenue	65,371	54,718	125,986	109,812
*Growth*		-16%		*-13%*
Net income (loss)	2,266	(1,788)	5,172	(2,595)

TDK Corp. reports its fiscal 2Q23 financial results for the quarter ended March 2023.

Among its several businesses, there is the magnetic application products segment made up of HDD heads, HDD suspension assemblies, and magnets.

This segment sales decreased 12.8% Y/Y from ¥125,986 million in 1FH22 to ¥109,812 million in 1FH23, with net income of ¥5,172 million and net loss of ¥2,595 million, respectively. It was ¥65,371 million and ¥54,718 for 2FQ22 and 2FQ23, respectively, down 16.3%, with net income of ¥2,266 million and net loss of ¥1,788 million, respectively.

Production of HDD heads and suspension assemblies was significantly lower than the previous fiscal year’s level due to a decrease in demand related to data centers on top of a sharp year-on-year decline in demand related to PCs.

Concerning magnetic heads, the company expand sales of MAMR heads and continue the development of HAMR as a next-gen technology.

According to Trendfocus, the only one analyst firms tracking market report on this subjects to our knowledge, HGA shipments fall 14% Q/Q to 363 million in 2Q22 on weak market demand and customer inventory corrections.