Japan 2 Ti Sponge Makers Post Low Profits for F2008 and F2009

Japanese 2 titanium sponge makers posted year-on-year lower profits for a full fiscal year ended in March 2009. Sales volume and selling price of titanium sponge declined along economy deterioration. Their profits were also impacted by higher depreciation due to output capacity expansion. Both of the makers forecast year-on-year lower sales and profits for fiscal 2009 started in April when the demand condition is expected to maintain stagnant.

Toho Titanium posted lower revenue and profit for fiscal 2008 than in fiscal 2007. As to the titanium business unit, the revenue decreased by 10.3% to 30.9 billion yen and the operating profit dropped by 40.4% to 8.2 billion yen.

Demand for titanium sponge sharply weakened in the second half of fiscal 2008 when global economy turned downward and new-model airplane production was delayed at a large airplane maker. Sponge selling price for steel making dropped down with demand decline. The price also decreased for export due to currency exchange rate of strong yen against US dollar. The sales of titanium fabricated products widely decreased as well.

Osaka Titanium Technologies also posted year-on-year lower revenue and profit in fiscal 2008. The titanium business unit remarkably worsened though polycrystalline silicon for semiconductors contributed to profit growth thanks to output capacity expansion and price hike.