Specialty Lube Sales Up for Moresco

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Specialty Lube Sales Up for Moresco

Moresco Corp. reported an 11% increase in sales revenue for its specialty lubricants segment and a 4% decline in sales for its synthetic lubricants segment for the six-month period ended Aug. 31. Specialty products experiencing demand recovery in Japan included pump oils, hydraulic fluids and cutting fluids.

The company’s fiscal year goes from March through February. Moresco’s combined specialty and synthetic lubricant sales of ¥8 billion (U.S. $54 million) accounted for 55% of the company’s external sales for the six months ended in August.

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For the six-month period, specialty lubricant sales were up at ¥7.1 billion, compared to ¥6.3 billion. For the second fiscal quarter, such sales were also 11% higher at ¥3.6 billion, compared to ¥3.3 billion in the year-earlier period.

The company said that in Japan in the six-month period, the recovery in demand for high-vacuum pump oils and flame-retardant hydraulic fluids – along with expansion in sales of cutting fluids – compensated for the decrease in die-casting fluids, which it attributed to a decrease in Japan’s domestic automobile production.

In China, sales revenue from specialty lubricants increased due to sales price corrections and the yen’s depreciation; however, sales volumes decreased because automobile production was below the level for the same period in 2021 due to restrictions on parts supply and restrictions on activities due to China’s zero-coronavirus policy, the company said.

In Southeast and South Asia, specialty lubricants sales revenue increased because of positive selling prices and the depreciation of the yen, although sales volumes decreased due to the impact of inventory adjustments by customers.

Revenue for the six months from sales of synthetic oils decreased to ¥991 million. In the second fiscal quarter ended Aug. 31, sales declined 8% to ¥489 million, compared to ¥530 million.

On the synthetic lubricants side, Moresco noted that sales of computer hard disk surface lubricants increased during the six month-period, due to the yen’s depreciation. However, the sales volumes of high temperature lubricants decreased.

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Asia    Business    Earnings    Finished Lubricants    Japan    Market Topics    Miscellaneous    Region    Synthetic Lubricants