Turnaround
Ironbridge Castings has swung from healthy profits to losses in two years, and the board wants a recovery plan before the autumn banking review.
← Back to the case library · How profitability cases run
Ironbridge Castings operates one foundry campus in Ohio with three legacy molding lines (A, B and C) serving long-tenured truck and farm-equipment customers, plus a new high-volume automotive line (D) commissioned 20 months ago to supply a drivetrain program. Revenue last year was $86.0M and EBITDA was minus $4.2M; two years earlier the foundry earned $6.1M of EBITDA on $81.0M of revenue.
Management attributes the swing almost entirely to energy: natural gas and electricity costs rose from $7.9M to $14.3M as utility tariffs reset after the supply crunch. The story is repeated to the bank, to the workforce and in every board pack. Less prominently, the quality department's monthly reports show rework queues growing, and two of the four heat-treatment ovens are now scheduled around the clock to keep up. The line D ramp also consumed most of the maintenance budget: its dies and fixtures were designed for a 30% faster cycle than the tool room has been able to hold.
The board's questions are blunt. How much of the last two years is the energy market, and how much is Ironbridge itself? What can be recovered in 12 months, and what is the plan for line D if it cannot pay its way? You advise the CEO.
Structuring Judgement Numeracy Creativity SynthesisCase Ace opens the case, poses the questions one at a time, reveals exhibits at the right moments and scores you against the model answer. Included in the MBB bundle — £40 for everything.
or get access to everything →