Osaka Titanium Targets 15-20% ROA in F2014

Osaka Titanium Technologies announced on Thursday the firm targets 15-20% return on assets in fiscal 2014 ending March 2015 under the new business plan from fiscal 2010-2014. The firm seeks sustainable growth for titanium and silicon business while the firm establishes third core business. The firm improves the productivity by 6% for sponge titanium, by 12% for titanium ingot and by 10% for polycrystalline silicon while the firm targets 4 billion yen of cost saving.

The firm targets 14.5 billion yen of operating profit, 14 billion yen of recurring profit and 8 billion yen of net profit with 62 billion yen of sales in fiscal 2014. The firm plans 1.3 billion yen of operating profit, 200 million yen of recurring profit and 100 million yen of net profit with 31.8 billion yen of sales for fiscal 2009.

The firm expanded the output capacity to annual 32,000 tonnes for sponge titanium to 10,000 tonnes for titanium ingot and to 1,400 tonnes for poly-silicon under current 3-year plan while the firm started construction of new 2,200 tonnes of poly-silicon in Osaka. However, the business condition is severe after financial crisis in late 2008. The firm tries to improve the profitability during the new business plan.

The firm expands the sales volume of sponge titanium for air plane through long term supply contracts while the firm tries to stabilize the price through moderate price mechanism. The firm also restarts shelved 8,000 tonnes of sponge titanium expansion depending on the demand. With the additional capacity and modernization, the firm expects the productivity improves by 6%.

The firm increases the annual production capacity of poly-silicon from current 1,400 tonnes to 1,550 tonnes through better operation. The firm doubles the advanced materials sales to 4 billion yen during the business plan through higher sales for high performance materials including high purity titanium.