Castings cheers investors as it announces results will beat expectations

(Sharecast News) - Shares in Castings jumped in morning trading on Wednesday, after the engineering firm said full-year results would beat expectations.The West Midlands-based manufacturer, which specialises in iron castings and machining, said there had been strong demand during the second half, due in part to customer stock building, and results for the year to 31 March would therefore be ahead of market expectations.The manufacturing sector has seen had uptick in activity in recent months, as customers, unnerved about the potential impact of the UK's exit from the European Union, stock pile raw materials and parts.However, Castings also noted: "The foundries have seen improved margins during the second half, with enhanced productivity and a reversal in the time lag in passing on raw material prices."The management initiatives implemented in the machining business have started to positively impact results, particularly in the final quarter of the year, although it will still take time for these to be full realised."Dominic Convey, analyst at Peel Hunt, left his forecasts unchanged ahead of speaking to management but conceded there was "clearly upward pressure". Peel Hunt has a 'buy' recommendation on the stock with a price target of 470p.The shares initially added more than 10% before easing off slightly. By 1000 BST, they were ahead 7% at 383.5p.