(Alliance News) - Castings PLC on Tuesday said "higher" levels of demand from commercial vehicle customers has continued in 2023.
Ahead of its annual general meeting on Tuesday, the Brownhills, England-based iron casting and machining firm said that "higher" demand from commercial vehicle customers has been maintained in the year-to-date.
In June, Castings had said that demand from commercial vehicle customers was "strong", amounting to 75% of revenue.
However, with such "elevated" demand and order backlogs, the company said the original equipment manufacturers have been restricting the number of new orders being accepted.
Castings noted that the forward demand schedules are beginning to suggest that these order backlogs are reducing, and therefore schedules are starting to reflect the underlying demand in the market.
Further, the company said that following a period of significant inflation during the previous year, input prices appear to have stabilised in the current year.
"We continue to invest in automation technologies to improve our productivity and profitability as well as giving consideration to capacity investment," Castings added.
Shares in Castings were down 0.4% to 398.50 pence each in London on Tuesday morning.
By Sophie Rose, Alliance News reporter
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Castings (CGS)