Japanese specialty lubricant maker Moresco Corp. reported increased sales for its specialty lubricants, boosted by increased automobile production in several key regions – including Southeast and South Asia – while decreased data center investment cut its synthetic lubricant sales for its first fiscal quarter ended in May.
The company’s fiscal year runs from March through February. Combined, Moresco’s specialty and synthetic lubricant sales of ¥5.8 billion comprised 76% of the company’s ¥7.6 billion (U.S. $54.5 million) in sales for the quarter ending May 31.
Specialty lubricant sales rose 8% to ¥3.7 billion for the quarter, compared to sales in the same period last year. Sales for die-casting fluids rose 5% to ¥1.1 billion, cutting fluids jumped 18% to ¥790 million, hydraulic oil sales edged up 2% to ¥449 million, and forging oil climbed 17% to ¥218 million, while vacuum oil was flat at ¥267 million in sales. Other types accounted for $888 million, a 7% increase.
Although its specialty lubricants sales volume was up 7% overall in the quarter, Moresco noted that its lubricant sales volumes decreased in Japan and China because of inventory adjustments at automotive parts manufacturers. Offsetting that was an increase in specialty lubricant sales volume in Southeast and South Asia, and in North America because of the positive impact of the increased automobile production in those regions.
Revenue for the quarter from sales of synthetic oils tumbled 40% to ¥301 million, compared to ¥502 million. Sales of its high-temperature lubricating oils declined 10% to ¥258 million, while sales of its hard drive disk surface lubricants plummeted 85% to ¥30 million, compared to ¥203 million. Other types of synthetic lubricants amounted to ¥13 million in sales, an 8% increase.
Specialty lubricant sales volume dropped 28% in the quarter. Inventory adjustments by customers caused the decrease in sales of lubricants for high-temperature applications, Moresco noted. The company attributed the steep drop in hard drive disk surface lubricants to a decline in data center investment during the quarter.