Castings warns market about reduced demand

BROWNHILLS engineering group Castings has warned shareholders and the wider market that it is facing a reduction in demand from its customers.

In a second interim management statement covering the period from October 1 to January 31, the firm – which supplies to the automotive and other sectors – told the Stock Exchange that since the last interim report there has been a further dip in demand.

“These appear to have plateaued and we anticipate that the year end results will be marginally below current market expectations,” it said.

“In these uncertain times it is impossible to make forecasts for next year,” it added.

Back in November Castings announced that half year revenue and profits had fallen as a result of reduced orders.

Sales for the six months ended September 30, 2012 were £60.4m (2011: £64.0m) with pre-tax profit after exceptional items hitting £9.11m (2011: £10.13m).