After an extraordinary surge in the previous year, Osaka Titanium Technologies is experiencing a notable dip in sales for the April-June quarter. The company's titanium business, which had been thriving due to an inflated demand for titanium sponge, saw a 16.8% drop in sales year-over-year, amounting to ¥11.2 billion ($76.2 million).
The sharp decline is largely due to a normalization in demand. Last year, the aviation industry, in a bid to distance itself from Russian products amidst the Ukraine conflict, drastically increased its procurement of titanium sponge. This year, however, that frenzy has subsided, with orders now reflecting what Osaka Titanium describes as "real demand."
Export sales, which make up a significant 72% of the company’s titanium segment, also fell by 7.2%, reaching ¥8 billion. The cooling off in demand has directly impacted these figures.
Despite the decline in sales, Osaka Titanium's bottom line tells a different story. The company posted a 69.7% increase in profits, reaching ¥2.9 billion. This impressive profit growth is attributed to strategic price hikes—10% for exports and 20% for domestic sales—alongside the benefits of a weaker yen, which has bolstered the company’s competitive edge in international markets.
Osaka Titanium had already anticipated this sales decline, having predicted lower demand during the April-September period. The company remains optimistic about a recovery in the second half of the fiscal year, which concludes on March 31, 2025.
Tags
RAREMETAL
