Castings says demand still subdued as FY revenues fall

(Sharecast News) - Shares in Castings fell on Wednesday after the Midlands-based iron casting and machining group said full-year results reflected subdued demand across its end-markets, with revenues falling year-on-year.

The company, which operates two iron foundries in the West Midlands (Brownhills) and Derbshire (William Lee), reported group revenues of �173.2m over the 12 months to 31 March, down 2.1% year-on-year.

Operating profit for the year jumped to �10.0m from �4.8m, while the company maintained its final dividend of 14.19p a share, taking its full-year payout to 18.4p, also unchanged on last year.

Demand from heavy truck customers, which comprise 70% of group revenues, continued at last year's reduced levels, with the group citing OEM data indicating that European heavy truck demand was 10% below normal.

Looking ahead, however, some OEMs have reported increases to their European truck forecasts for 2026, though this have been offset by power issues at its William Lee site at the start of the financial year.

"We will continue to develop opportunities with existing customers in areas such as the electrification of lighter trucks and build relationships in other markets such as wind energy and agriculture," said chair Alec Jones. "We remain well positioned to take advantage of any increases in the US market as and when they come through."

The stock was down 2.6% at 317.55p by 0839 BST.

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