Castings in profits joy

Brownhills manufacturing success story Castings has seen profits double and sales jump by nearly a third in the last six months as it prepares to complete a £5 million expansion project in the new year.

The new warehouse will enable it to expand production on the Lichfield Road site and help create up to 146 jobs.

Today the foundry and engineering group said sales in the six months to the end of September were up to £64 million from £44.6 million a year ago, as pre-tax profits rose to £10.1 million, up from £5.1 million last time.

Around 80 per cent of the company's castings go for exports, mostly to commercial vehicle and car manufacturers.

Castings chairman Brian Cooke said today that investment in the business was paying off, boosting results.

"Our recent investments have made a significant contribution to the results both from the foundries and the machining business," he said.

"It is encouraging that we have and are winning new business and new customers which gives us confidence for the future."

The 150-year-old company employs more than 1,000 people at its headquarters and foundry in Brownhills, where it also runs its CNC Speedwell machining arm, and at Fradley Park, Lichfield.

It also runs the William Lee foundry in Derbyshire.

But Mr Cooke warned that some customers had seen commercial vehicle production falling by 10-15 per cent, which could have an impact on Castings.

"It is still very early to forecast what effect these reductions, and potentially further reductions, will have on the full year results," said Mr Cooke.

"The European and world economies are very unstable and unpredictable. As in previous periods of uncertainty, the company is well prepared to react to customer's changing demands."