Foundry group Chamberlin returns to profit
WALSALL-based foundry firm Chamberlin has returned to profit, it announced this morning.
Its half-year results for the six months to September 30 show continuing progress in business turnaround and the group says its cost reduction programme has aided return to profitability.
Revenue is up by 8.2% to £21.1m (2013: £19.5m) and, crucially, its underlying profit before tax was £400,000 compared to a £600,000 loss in 2013.
Foundry division revenue was up 8.5% to £16m while engineering division revenue was up 7.1% to £5.1m.
The group’s fortunes have been aided by two recent hefty foundry division contract wins – one for €6.7m over four years and one for €26m over eight years
Chairman Keith Butler-Wheelhouse, said: “Results for the first half show a significant improvement on the same period last year, and most importantly, Chamberlin has moved back into profitability.
“This reflects a combination of factors including management actions to address the cost base, a strong performance from the Walsall foundry, helped by improved conditions in the turbocharger bearing housing market, and the engineering division delivering improved sales and profits.
“Actions to deliver the on-going turnaround of the business continue. The new executive team remains focused on measures to achieve further cost efficiencies and improve processes.
“At the same time, we are working on new business development and further refining growth plans. The two major new contracts wins we announced on 17 October and 18 November are highly encouraging.
“While there are clear challenges, the whole organisation remains focused on our business turnaround plans and therefore we believe that the group remains positioned to deliver current market forecasts for the full year.”