Toho Titanium Sees Profit Surge Amid Strong Aviation Demand

Japanese titanium producer Toho Titanium reported a significant surge in earnings for the latest quarter, driven largely by robust demand from the aviation sector. The company's titanium business segment saw revenues and profits of approximately ¥15.9 billion ($109 million) and ¥1.3 billion, respectively, in the first quarter of its fiscal year, marking a 37.4% increase in revenue and a more than sevenfold rise in profit compared to the same period last year.

A Toho spokesperson attributed the growth primarily to strong demand from the aviation industry, noting that the company's production facilities operated at full capacity both domestically and internationally. "The run rate of the Saudi plant almost doubled from around 50% during the same period last year," the spokesperson said, referring to the company's joint venture in Saudi Arabia with Advanced Metal Industries Cluster (AMIC), which played a key role in boosting production.

The Saudi plant's production volume is reported to be around 15,000 tons per year, equivalent to the annual output at Toho's Wakamatsu plant in Fukuoka prefecture, Japan.

Toho also benefited from a weaker Japanese yen, which enhanced its price competitiveness in global markets. Despite the ongoing demand in the aerospace sector and increased production rates, the company stated that it does not plan to further raise its production outlook, citing already maxed-out operational capacity.

However, Toho maintained its financial outlook for the fiscal year ending March 31, 2025, anticipating a potential decline in titanium ingot sales for general industrial use due to weakening demand.