Profit warning issued by Castings
The Brownhills-based Castings group has issued a profit warning.
The business does not expect demand from its commercial vehicles customers to improve until early next year.
Around 80 per cent of revenue for the iron castings and machining group comes from commercial vehicle customers.
Ahead of the group's annual general meeting, chairman Alec Jones said that since June demand had remained at lower levels and customers had now indicated that there was unlikely to be any improvement before at least early 2025.
Original equipment manufacturers are citing caution in the end customer buying decisions, particularly in Europe.
Mr Jones said that in the light of this, the result for the full year to March 31, 2025 was anticipated to be below market expectations.
Also in June the group bought the Russell Ductile Castings business,which had ceased production in May, from the administrators of Walsall-based Chamberlin for £400,000.
The Castings Ductile iron foundry business in Scunthorpe began production in early July and the vast majority of the former customer base has been retained.
"The expected cost of the new foundry production line being installed at our Dronfield site remains in line with budget and is still expected to be complete in early summer 2025," added Mr Jones.
