Strong profits performance from Castings

Truck sales across Europe surged last year as firms tried to beat the deadline for a change in exhaust emission regulations. As a result, Castings' parts were in high demand from truck manufacturers.

Sales figures for the year rose by 12 per cent to £137.5 million of which more than two thirds went for exports. Pre-tax profits were up by more than £2 million to £21.8 million for the 12 months to the end of March.

During the year the company dispatched 57,600 tons of its castings, nearly 5,000 tons more than the year before.

At the same time the group's maching operation, CNC Speedwell, which is based on the same site in Lichfield Road, Brownhills, saw its revenue rise by 13 per cent.

Company chairman Brian Cooke said: "The results were affected by the disruption following the change in European exhaust emissions regulations from Euro 5 to Euro 6.

"The increase in demand at short notice created excessive manufacturing and transport costs to meet our customers' requirements. Business has since returned to more predictable levels without exceptional disruptions."

He said customer demand had fallen back from the high levels of last year but several major customers were forecasting an increase in the second half of Casting's financial year, after September.

"We await further developments and hope the economic recovery in Europe continues," said Mr Cooke.

Across the Castings and CNC Speedwell sites the company employs around 600 people. Mr Cooke paid tribute to the workforce who had to cope with the sudden surge in demand, saying: "I would like to thank all our employees who have reacted well to the variable demands from our customers."

Meanwhile the group has been spending heavily on its operations, investing £3.4 million at its foundries in Browhills and Dronfield to increase capacity for production and finishing work. Another £6.1 million has been spend on new machinery and inspection equipment at the CNC site.