Western Digital Expects Worse

With lower prices eating away at its profit margin, Irvine-based Western Digital Corp. said that its fiscal fourth-quarter loss would be nearly double analysts’ expectations. In suffering what would be its seventh consecutive quarterly loss, the beleaguered computer hard-drive maker echoed projections by two competitors earlier this month that they would not meet Wall Street estimates. Western Digital said it would lose between $81.5 million and $88.8 million, not including a $20-million charge that it had previously said it would incur as part of a restructuring of its business. The upcoming deficit will bring the company’s losses during the last seven quarters to more than $830 million. Western Digital shares, which already have fallen 56% this year, lost 38 cents Thursday, closing at $6.50, a 52-week low. Industry analysts blamed the price pressures on a new low-cost drive by Seagate Technology Inc. and on dumping of excess inventory by South Korea’s Samsung.