Japanese specialty lubricant manufacturer Moresco Corp. reported higher sales of both specialty lubricants and synthetic oils for its second fiscal quarter, which ended in August, boosted by continued recovery in automobile production both domestically and in other countries.
Sales of specialty lubricants grew 37% to ¥6.3 billion (U.S. $55.4 million) for the fiscal quarter ending Aug. 31, improving from ¥4.6 billion in the same period last year.
Japan’s domestic automobile production remained on a recovery trend during the quarter, despite the continued shortage in semiconductor supply, the company said in its explanation for specialty lubricants business results. Sales of lubricants increased in general, Moresco said, and sales of cutting fluids – which the company is focusing on expanding – were favorable.
The company noted that automobile production has rebounded significantly during the past year in Southeast Asia and South Asia, leading to increased sales of specialty lubricants, such as die-casting oils.
Revenue from synthetic oils topped ¥1 billion, up 13% from ¥917 million, the company said.
Sales of synthetic lubricants for high-temperature applications increased against the backdrop of a recovery in domestic automobile production and strong demand in China, Moresco said. Sales of sulfonates, used as an additive for metalworking fluids, also increased due to the recovery in Japan’s automobile sector.