Castings, the U.K. iron-casting and machining group, has announced its plans to capitalize on the robust demand for heavy trucks, which currently makes up 75% of the company's revenue. In line with market expectations, Castings expects to perform well in the upcoming interim results.
To leverage the high level of demand for heavy trucks, both present and projected, Castings has implemented strategic measures. This move is necessary as the current demand exceeds the company's foundry production capacity.
Fortunately, input prices have stabilized and even experienced a slight reduction in certain areas, providing some relief for Castings.
The company maintains a strong balance sheet and has generated significant cash flow in the past six months, before dividends. Management is confident that Castings will continue to trade in line with market expectations.
According to market consensus provided by FactSet, Castings is projected to achieve sales of £220.5 million ($269.9 million) and a pre-tax profit of £19.3 million for the fiscal year ending March 31, 2024. This compares to figures of £201.0 million and £16.7 million, respectively.
As of 0841 GMT, shares have risen by 14.00 pence, or 4.3%, reaching 340.00 pence.