Castings PLC on Tuesday said that the expected cost of the new foundry production line being installed at Dronfield remains in line with budget while it noted continued subdued demand.
The Brownhills, England-based iron casting and machining firm said demand from its commercial vehicle customers, which account for 80% of the company’s revenue, continues to remain at a lower level albeit with a potential for a slight increase in autumn.
‘Our customers have now indicated that there is unlikely to be any improvement before at least early 2025. The original equipment manufacturers are citing caution in the end customer buying decisions, particularly in Europe. In the light of this, the result for the full year to 31 March 2025 is anticipated to be below market expectations,’ Chair Alec Jones is set to say at the company’s annual general meeting on Tuesday afternoon.
Perhaps more positively, Castings said the anticipated cost of the new foundry production line that is being installed at its Dronfield site remained in line with budget and is expected to be completed in early summer 2025.
Back in June, the company said: ‘Additional flexibility and resilience will be provided through investments in a new foundry based in Dronfield.’
Castings shares fell 6.5% to 317.98 pence each on late Tuesday morning in London.
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