Business
Interim Results
Interim Results.
About this update from Castings Public Limited Company
[{"type":"text","content":"\n RNS Number : 9613I Castings PLC 27 November 2008 \n \nChairman's Statement\n\nProfit before tax and exceptional items for the six months ended 30th September 2008 was £6.22m compared with £6.27m in the period ended 30th September 2007.\n\nTrading profit in the six months to 30th September 2008 was generally in line with expectations despite a shortfall in the recovery of rapid raw material increases during April through to July. This resulted in a reduction of operating margins.\n\nIt was disappointing to report that our deposits in three Icelandic banks are under threat; we as yet have little news on the eventual outcome. The deposits were made earlier in the year when our advisors rated them satisfactorily. However, as a matter of prudence, we have made full provision against these deposits of £5,701,000. Notwithstanding these at risk deposits, we have further substantial funds available. The Board is therefore satisfied that any loss which may be incurred on these deposits will not have any impact on the ability of the group to finance its trading operations or its ongoing capital expenditure programme at William Lee.\n\nIn my statement in our 2008 Annual Report written in June, I referred to the 'crazy situation'. The world financial problems are now very well documented and the resultant effects on all manufacturing companies, particularly those related to the car and truck industries, are becoming clear.\n\nUp to the end of September all companies were operating well, but since the beginning of October we have seen a substantial reduction in customers' schedules, now up to 40%, in the commercial vehicle manufacturers and at a higher level in the car industry. As a result of these reductions and the uncertainty in the immediate future we have had to reduce the number of shifts worked and regrettably we have had no option but to reduce the numbers employed.\n\nCustomer demands are changing on a daily basis; hence it is impossible to forecast profits but the Board consider that the results for the full year to 31st March 2009 will be below market expectations. The company will make every attempt to balance cost with customer re...