Brownhills manufacturer Castings has reported a slight improvement in fortunes after revealing it axed 350 staff in June.
Investors were told at its annual meeting yesterday that it was at half capacity – a 10 per cent improvement compared with two months ago – and there were signs of improvement.
The company was forced to lay off workers after seeing a 13 per cent fall in sales, to £85 million, in the year to April.
It was also hit by a £2.2 million redundancy bill and a possible £3.8 million loss on deposits with failed Icelandic banks.
Chairman Brian Cooke said: “Our annual report dated June 24, 2009 states we were operating at 40 per cent of our maximum production levels. This has now improved to just over 50 per cent.
“We hope customer de-stocking is coming to an end and the reported improvement in world economies will lead to an improvement in our markets.
“The half year and full year results will depend on the continuing recovery during the next few months.”
Mr Cooke had admitted earlier this summer that the downturn in demand the Lichfield Road firm had come up against had been “unexpectedly rapid”.
Castings’ turnover fell from more than £97 million last year, after the group produced 45,100 tonnes of castings over a 12-month period, compared to 58,700 tonnes the year before.
It had faced losing £5.7 million from the collapse of Heritable Bank and Kaupthing Singer and Friedlander but managed to claw some money back from administrators and the loss was recorded at £3.8 million.