Tougher times in the engineering and automotive sectors have triggered a drop in profits at Alumasc Group.
The Northamptonshire company's castings business suffered mounting losses during last year, which led to the closure of its Copal Casting site in Handsworth, Birmingham, in November.
Trading losses and redundancy costs at Copal, which axed 75 jobs, cost £1.4 million in the first half, as forecast in November.
Alumasc said: "This has been a costly exercise but is consistent with the board's strategy to focus the group on its core premium building and engineering activities."
In the half year to December 31 2005 pre-tax profits fell from £3.7 million to £2.9 million, despite sales increasing to £59.4 million from £54.3 million.
Chief executive Paul Hooper said: "The engineering division has gone through a lot of churn, with about 65 per cent of our projects stopping, including Rover which forced us to close Copal.
"But we have been replacing those and we have some big work with Perkins, Caterpiller and JCB coming through.
"We have a big order book - looking forward expect to see some benefits from that in the coming months."
The company also employs 65 people at its Brock Metals site in Norton Canes, near Cannock and 39 at Telford, maintained its interim dividend at 3p.
In Alumasc's Building Products division, it saw turnover grow by £4 million, or 18.5 per cent, to £25.9 million and profits up by five per cent to £2.5 million.
Meanwhile, the engineering division was hit by rising energy costs, which £200,000 higher than last year.
Profits of £600,000 in the period were £700,000 million lower as a result, Alumasc said.
Rising metal prices boosted turnover at Brock Metals, disguising weak demand from UK customers, while low demand from UK brewers similarly affected Alumasc Dispense. Both Brock and Alumasc Dispense have taken actions to improve performance.