Japanese titanium producers have mixed sales outlooks for the current fiscal year ending 31 March 2025, with different expectations on how strikes at Boeing could impact their financial performance.
Japanese producer Osaka Titanium Technologies has revised its titanium business sales forecast downward for the 2024-25 fiscal year by ¥3.5bn ($22.8mn) to ¥49bn from its initial outlook announced in May. This is mostly owing to a possible fall in titanium sponge sales following strikes and a series of quality management issues at Boeing, according to Osaka Titanium.
Boeing's union-backed machinists conducted a seven-week work stoppage that halted production of major jet programmes, before they approved a new labour contract with the aerospace company in early November.
Osaka Titanium is concerned about possible further impacts on the aerospace supply chain, the firm said. Boeing cautioned that it will take time for operations to stabilise.
Osaka Titanium's sales totalled ¥26.2bn in April-September, down by 2.8pc from a year earlier. Operating profit increased by 59.3pc on the year to ¥6.3bn, according to the company.
In contrast, another major Japanese producer, Toho Titanium, expects no major impact from the Boeing issue, keeping its overall sales outlook for the 2024-25 fiscal year unchanged at ¥95.3bn from the initial forecast announced in May.
The company did not disclose the breakdown of its titanium business but reiterated that there have been no cancellations of orders because of the Boeing issue, a Toho representative told Argus. Sales volume for overseas buyers are under fixed contracts until the end of December, he said, adding that the company's titanium sales forecast will not change for the remaining of the 2024-25 fiscal year.
Toho Titanium's sales totalled ¥43.8bn in April-September, up by 20pc from a year earlier. Operating profit increased to ¥2.4bn, up slightly from ¥2.3bn a year earlier.
