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Castings enjoys benefits from manufacturers' stock-building

Published: 15:58 01 May 2019 BST

manufacturing
Castings said management initiatives had “started to positively impact results”

Foundry operator Castings PLC (LON:CGS) expects full-year profits to come in ahead of current market expectations.

The group, which supplies graphite iron castings to a variety of manufacturing sectors from its fully mechanized foundries in the West Midlands, said it had seen strong demand during the second half of the financial year ending 31 March.

Trading in the second half had included some customer stock building, Castings said, which ties in with wider reports in manufacturing industry surveys in the run-up to the erstwhile March Brexit deadline.

“The foundries have seen improved margins during the second half with enhanced productivity and a reversal in the time lag in passing on raw material price increases,” the company said.

Initiatives implemented in the machining business were said to have “started to positively impact results”, particularly in the final quarter, although management stressed that it will take time for these to be fully realised.

The company said final results will be published on 12 June.

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