Tax gain buoys Western Digital

Western Digital Corp., a maker of computer hard disk drives, said fourth-quarter profit almost doubled because of a tax gain and growing sales of products for digital video recorders.

Net income jumped to $233 million, or $1.03 a share, from $120 million, or 53 cents, a year earlier, Lake Forest, Ill.-based Western Digital said. Revenue rose 26% to $1.37 billion, beating analysts’ estimates.

Western Digital’s sales growth has topped 20% for four straight quarters on demand for personal computers, hand-held devices and DVR machines. The company agreed in June to acquire Komag Inc. for about $1 billion in cash, giving Western Digital storage products that it can sell into those markets.

Shares of Western Digital fell 25 cents to $22.53 before the report. They have gained 10% this year.

Western Digital’s profit included a $147-million income tax benefit. The company’s sales exceeded analysts’ average estimate of $1.33 billion, according to a Bloomberg survey.