MORESCO Corporation
5018・Standard Market・Oil & Coal Products
Japan
Core domestic segment manufacturing and selling Specialty Lubricants, Materials, and Hot Melt Adhesives
| Period | Current | Previous | Change |
|---|---|---|---|
| External customer sales (Q1 FY2027 (ending March 2027)) | ¥6,368 million | ¥5,403 million (Q1 FY2026 (ending March 2026)) | ↑ |
| Segment profit (Q1 FY2027 (ending March 2027)) | ¥819 million | ¥306 million (Q1 FY2026 (ending March 2026)) | ↑ |
| External customer sales (full year, prior year results) | ¥22,249 million (full year FY2026 (ending March 2026)) | — | — |
| Segment profit (full year, prior year results) | ¥1,526 million (full year FY2026 (ending March 2026)) | — | — |
Business Details
The core segment for which MORESCO Co., Ltd. is responsible for domestic manufacturing and sales. Main products include Specialty Lubricants (Cutting Fluids, flame-resistant hydraulic fluids, Die-Casting Fluids, hard disk surface lubricants, etc.), Materials (liquid paraffin, sulfonates), Hot Melt Adhesives, and Energy Device Materials. Automotive brake fluid and antifreeze are manufactured and sold by Ethylene Chemical Co., Ltd. A major customer is Matsumura Sekiyu Co., Ltd. This is the largest segment, accounting for approximately 68% of consolidated net sales (Q1 FY2027 (ending March 2027) results).
Recent Overview
Price corrections combined with stock-securing demand led to substantial increases in both sales and profit
In Q1 FY2027 (ending March 2027) (March-May 2026), the Japan segment's external customer sales were ¥6,368 million (up 17.9% year-on-year), and segment profit was ¥819 million (up 167.4% year-on-year), achieving substantial growth in both sales and profit. Price corrections in response to rising raw material costs were implemented across all divisions, and sales of Die-Casting Fluids and other products increased due to customers' stock-securing demand amid turmoil in the Middle East situation. Sales of high-value-added products such as hard disk surface lubricants for data centers also increased. Higher sales of sulfonates contributed to increased sales in the Materials division, and increased sales related to wastewater treatment equipment also contributed.
Key Products
Growth Drivers
- Increased demand for hard disk surface lubricants for data centers
- Improved profitability through price corrections implemented across all divisions in response to rising raw material costs
- Expansion of market share through new sales expansion of Cutting Fluids
- Increased sales of sulfonates in the Materials division
- Increased sales of wastewater treatment equipment (Other division)
- Expansion of MORESCO Green SX products and promotion of global expansion
Risks
- Difficulty procuring raw materials such as crude oil and naphtha and price surges due to turmoil in the Middle East situation
- Decreased demand for flame-resistant hydraulic fluids, Die-Casting Fluids, etc. due to continued weak domestic automobile production
- Sluggish demand for Hot Melt Adhesives for hygiene material applications
- Pressure on profitability in the Hot Melt Adhesives business due to soaring raw material prices
- Risk of increased financial costs due to rising interest rates and sharp currency fluctuations
- Impact on production and sales activities due to continued severe labor shortages
- Risk of impairment of fixed assets in the Japan segment (¥188 million recorded in the prior fiscal year)
Last updated: May 26, 2026