TOKYO — Carbon fiber composites are valued for their sturdiness and resistance to extreme temperature. Now, a top supplier of the aircraft body material faces a test of its own resilience to earnings pressure.
Toray, the world leader in synthetic carbon fiber by market share, has been dragged down by falling global demand for aircraft during the coronavirus pandemic.
The Japanese materials group endured similar turbulence during the economic slowdown after the 2008 global financial crisis. But its earnings are arguably more resistant to headwinds now, thanks to two revenue sources beyond the aerospace industry.
Toray’s fibers and textiles segment and performance chemicals segment both benefit from greater demand from the automotive industry. Toray’s textiles go into car seats and air bags, while its performance chemicals are used in lightweight, heat- and wear-resistant plastic…
