Japanese specialty lubricant manufacturer Moresco Corp. reported higher sales of specialty lubricants and slightly higher sales of synthetic oils for the fiscal quarter ended in November, due to automobile production increasing in some regions despite a global semiconductor shortage.
Sales of specialty lubricants grew 27% to ¥9.7 billion (U.S. $85.2 Million) for the company’s third quarter, improving from ¥7.6 billion in the same period last year and surpassing by 2% the segment’s sales in the same quarter in 2019.
Japan’s domestic automobile production was hampered by a shortage of semiconductor supply, and after August begin to decline in comparison to the same month last year, the company said. Despite these circumstances, sales of lubricants in general increased. According to Moresco, sales of small-quantity, die-cast mold release agents that contribute to productivity improvement showed gains during the period, as did cutting oil release agents.
As in other regions, sales of specialty lubricants such as die casting oils increased in North America due to an increase in automobile production. As in China, sales of small-quantity, die cast mold release agents also expanded steadily in North America.
The company said that although economic recovery was delayed in Southeast and South Asia, compared to other regions, sales of specialty lubricants still increased due to increased automobile production.
Revenue from synthetic oils increased 7% to ¥1.5 billion, up from ¥1.4 billion. The total for the quarter was just shy of the ¥1.6 billion in sales in the same period in 2019.
In China, sales of synthetic lubricants for high-temperature applications increased against the backdrop of a recovery in domestic automobile production and strong demand. The company noted that rising raw material prices in Japan and abroad continue to put pressure on the profits of manufacturing industries.