The company declined 12.4 percent to end at 10,000 yen on the Tokyo Stock Exchange, the largest drop since Nov. 14, 2002 on a closing basis. Toho Titanium Co. also fell.
Osaka Titanium, based in Hyogo Prefecture, yesterday cut its full-year profit forecast to 11.6 billion yen ($101 million) from 11.8 billion yen, citing increasing competition from China. Still, the company secured a 10 percent price gain with customers from January, according to a statement on its Web site.
``We had previously been looking for a 15 percent increase'' in prices, Doug Hayashi, an analyst at HSBC Securities Japan Ltd. in Tokyo, said in a report dated yesterday. Prices of the metal jumped between 20 percent and 30 percent in each of the past three years, said Hayashi, who lowered his price target for Osaka Titanium by 17 percent to 8,400 yen.
Toho Titanium Co., the world's third-biggest producer, sank 6.8 percent to 4,250 yen, the biggest drop since Sept. 13 on a closing basis.
Osaka Titanium, which changed its name from Sumitomo Titanium this month, trails only Russia's VSMPO-Avisma Corp. (VSMO2) in output of the metal. Aircraft makers such as Boeing Co. and Airbus SAS, which account for half of world demand, are using more titanium to increase fuel efficiency.
To contact the reporter for this story: Dave McCombs in Tokyo at firstname.lastname@example.org
To contact the editor responsible for this story: James Poole at email@example.com