Pre-tax profits at Castings fell to £15.9m in the year to the end of March - down from £19.7m last time.
Revenues of £118.8m were down from £132.4m and gross profits fell to £30.2m from £34.0m.
The directors have recommended an increase in the final dividend to 10.59 pence per share (2016 - 10.33 pence per share).
This would give a total normal distribution for the year of 13.97 pence per share (2016 - 13.71 pence per share).
Chairman B. J. Cooke said: "Despite a reduction in output during the year the foundries maintained a good profit level.
"This has been achieved by continued investment in productivity.
"In this respect, both at Brownhills and William Lee, investment in robotic handling is taking place which will improve quality standards and reduce costs associated with the processing of raw castings.
"The improvements reported last year in relation to William Lee are continuing and the result from this company is expected to improve in the current year."
At 9:27am: (LON:CGS) Castings PLC share price was -16.38p at 452.5p