MaxiTRANS posts year-end financial results

3 MinutesBy NZ Trucking magazineAugust 28, 2017

MaxiTRANS has posted a 100% rise in annual net profits to AU$10.7 million on an almost unchanged revenue take of AU$340 million, following net profits of $4.5 million and $5.2 million in 2015 and 2016 respectively.

A 2% rise in MaxiTRANS‘ Australian trailer business was offset by a 27% decline in New Zealand. The market uncertainty in New Zealand resulting from transport regulation changes affecting trailer dimensions was reflected in the 2016 results. While the changes came into effect in February this year, orders did not immediately improve and as a result, both revenue and profit significantly declined. MaxiTRANS expects a significant improvement on this next year.

General market conditions have started to improve in Australia, with trailer registrations increasing slightly in 2016 after two years of decline. MaxiTRANS held its leading market share position and achieved a 3% increase in unit sales.

Strong infrastructure construction activity, most notably in NSW and increased crop production, drove a 74% increase in tipper sales.

Sales of the Freighter general freight products declined due to subdued market confidence. While sales of the Maxi-CUBE refrigerated vans were also lower, this was partly due to the abnormally high sales the year before.

The company expects continued strong demand for tippers as infrastructure construction continues. Although the equipment replacement cycle had not shown any signs of starting, meaning the average age of the Australian trailer fleet continued to rise, they expected as business confidence improved, this would change.

Parts and components arm MaxiParts gained 1.2% in revenue, with that put down in part to the IT-driven Maxi-Stock inventory system and AirMax suspension system.

MaxiTRANS has formed a strategic alliance with Monash and Federation Universities to enhance its research and development activities.

“Via this new collaborative agreement, we aim to further push the boundaries of trailer design and construction to increase the industry‘s efficiency and environmental sustainability.

“As new initiatives are introduced across the MaxiPARTS business, including the introduction of new products into the portfolio, as well as the realisation of benefits from cost saving measures, we expect to see further growth and improved profitability from this business.”