Japan Sponge Ti Makers Post Better Results for 1H F2011

Japanese 2 sponge titanium makers posted better operating results for first half of fiscal 2011 started in April than previous outlook. Higher demand at home and abroad improved the results despite of higher yen rate and higher raw materials cost. They revised the results target upward for fiscal 2011 ending March 2012 by increasing export price and reducing cost while they reduced annual sales outlook.

Osaka Titanium Technologies posted 3.361 billion yen of operating profit for the first half year compared with 1.405 billion yen of loss in same period of fiscal 2010 and 2.9 billion yen of profit outlook as of April. Toho Titanium posted 485 million yen of operating loss compared with 2.533 billion yen of loss in same period of fiscal 2010 and 700 million yen of loss outlook as of September.

Sponge titanium demand improved for airplane when Boeing delivered first 787 model planes with more titanium consumption in September and increased the production for existing models. The demand increased for power plant and industrial plants. Toho Titanium posted 232 million yen of operating profit for titanium unit for the first half of fiscal 2011 compared with 2.605 billion yen of loss in same period of fiscal 2010.

They expect better results for fiscal 2011. Osaka Titanium Technologies expects 7.8 billion yen of operating profit compared with 7 billion yen of profit outlook in April and 4.32 billion yen of loss in fiscal 2010. Toho Titanium revised the operating loss outlook from 300 million yen as of September to 100 million yen for fiscal 2011 compared with 4.496 billion yen of loss in fiscal 2010.

They expect higher selling price for second half year. Osaka Titanium Technologies’ president Shozo Nishizawa said at press briefing on Thursday the firm concluded the price negotiation with offshore rolled titanium makers to realize higher sponge titanium price for December shipment.