Moresco reported a 10% increase in specialty lubricant sales and a 39% drop in synthetic lubricant sales for the six months ending Aug. 31, attributing the former to economic recovery in Japan and increased automobile production in Asia and North America.
The company’s fiscal year runs from March through February. Combined, Moresco’s specialty and synthetic lubricant sales of ¥8.3 billion (U.S. $55.4 million) accounted for 54% of its ¥15.4 billion in sales for the six-month period ending Aug. 31.
Specialty lubricant sales reached ¥7.7 billion for the period, compared to ¥7 billion.
Sales for die-casting fluid sales rose 14% to ¥2.4 billion, cutting oil revenue jumped 18% to ¥1.6 billion, hydraulic oil sales increased 7% to ¥941 million and forging oil sales climbed 18% to ¥454 million, while vacuum oil edged up 1% to ¥536 million in sales. Other types accounted for ¥1.8 billion, up 2%.
Moresco said that in both Southeast Asia/South Asia and in North America, sales of its specialty lubricants increased due to increased sales volumes and increased prices due to increased automobile production.
The company said that in Japan, with its economy on a gradual recovery trend, sales volumes of specialty lubricants for diecasting fluid applications exceeded results in the same period of the previous year, but sales of flat-retardant hydraulic fluids were down.
In China, real estate issues and consumption restraints due to a delayed employment recovery weighed down the recovery in domestic demand for specialty lubricants, the company said, and were also affected by lower operating rates at Japanese automotive parts manufacturers.
Sales of synthetic lubricants slumped to ¥607 million, down from ¥991 million.
Revenue for the period from sales of synthetic oils dropped to ¥607 million, compared to ¥991 million. Sales of its high-temperature lubricating oils declined 12% to ¥504 million yen, while sales of its hard drive disk surface lubricants fell 81% to ¥74 million, from ¥392 million. Other types of synthetic lubricants amounted to ¥29 million in sales, a 16% increase.
Specialty lubricant sales volume dropped 31% in the quarter. Sales of high-temperature lubricants decreased due to production adjustments by customers, the company said. Moresco attributed the steep drop in hard disk surface lubricant revenue to declining investments in data centers.
On the specialty lubricants side, the company makes die-casting fluids, cutting fluids, hydraulic oils, forging oils and vacuum oils, among other products. Its synthetic oils include high-temperature lubricating oils, hard disk surface lubricants and other types.