Castings remains calm as economic gloom deepens
WALSALL engineering group Castings has said it is too early yet to know how the current economic problems will affect the business during the remainder of the year.
In a statement to shareholders at the company’s AGM, chairman Brian Cooke said the firm had not received any drop off in demand from its customers.
“The first three months trading has been very encouraging and is ahead of expectations,” he said.
“We have no indication from our major customers of reductions in demand, however it is still too early to know how the current economic problems will affect us.”
The Brownhills firm buoyed the manufacturing sector in June with a strong set of annual results.
Turnover increased 74% to £105.4m for the year ended March 2011 and of this, 60% was exported. Profits rose to £15.5m.
It said then that the second half of the year had seen an improving trend and this had continued, to the point where the business was operating at pre-recession levels and in its machining business, at levels above those in 2008.
It was so encouraged by the situation that it was both taking on new staff and re-employing a number of the workers it had made redundant at the onset of decline.
Mr Cooke said at the time of the results: “It is sincerely hoped we can enjoy a period of sustained growth in a somewhat uncertain economic outlook. Our major customers appear to be optimistic about the future and forecast increased volumes.”
He added in the AGM statement that work on the group’s new building was well under way and should be completed on time by January 2012.
