MaxiTrans sees annual profit rise


Firm drives through period of uncertainty and views coming financial year with confidence

MaxiTrans sees annual profit rise
Freighter developments are expected to boost MaxiTrans.

 

MaxiTrans has reaped the rewards of a focus on efficiency and tackling waste, perseverance in China and an end to political and regulatory uncertainty, to see a promising new financial year.

Net profits last year rose 16.4 per cent to $5.23 million on a 3.3 per cent rise in revenues to $340 million.

But for about $4 million in impairment loss on Lusty and Hamelex White intangible assets and the closure cost of the Bundaberg facility, the bottom line would have been higher.

MaxiTrans continues to see "an increase in the average age of trailer fleets, thereby placing increased pressure on operators to upgrade their fleets to take advantage of efficiency improvements resulting from trailer design innovation and to minimize maintenance costs".

With the federal election out of the way, concerns surrounding the Road Safety Remuneration Tribunal now gone, and market shifts turning its way, the company sees a positive new year ahead.

The demand for refrigerated vans remains strong and recent rains along the Australian east coast has led to an improved order bank for tippers.

"In terms of our market presence, we should experience an improvement in trailer sales as the NSW dealership continues to establish itself in its market," the company says.

"With the closure of the Bundaberg facility behind us, the business will continue to benefit from efficiencies created through the continuous improvement program together with a full year of the rationalised manufacturing footprint."

It adds that the China panel business Maxi-Cube Tong Composites (MTC) should "continue to benefit from the evolution of the supply chain in China and growth opportunities are pursued across Asia" after seeing profit up 200 per cent and revenue rise 43 per cent.

Its New Zealand operation also saw proposed transport regulation changes affecting vans resulting in customers delaying purchasing decisions in the second half.

It expects new MaxiParts business initiatives to offset turbulence affecting that arm after a year when the truck and trailer parts market – particularly in Queensland, its largest market, and Western Australia – saw further contraction in resources activity and continued drought.

Best performing product line was MaxiCube with unit sales growing 26 per cent, with efficiencies from manufacturing continuous improvement program helped to protect margins.

Freighter bore the brunt of second-half uncertainty, with unit sales down 12 per cent, though the order bank was actually up by the same amount.

The parent firm is looking to a boost for the segment from product enhancements including the TautlinerMark II, a new load restraint gate design  and the new PanelMasta Ultra Panel, a high-density foam panel.

Tipper unit sales rose 4 per cent and its order bank was more than 200 per cent higher.

 

 

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