POPULAR WORDS

October 16, 2009

Transport equipment supplier MaxiTrans says it has weathered the worst of the economic storm, but in a warning to the rest of the industry it says full recovery is some time off.

Chairman Ian Davis told shareholders at the company’s annual general meeting that the industry must proceed with caution.

Calling the 2009 financial year one of the “most challenging” in the company’s history, Davis says he is confident the industry is on steady grounds.

“There is no need for us to dwell on the dramatic economic and business environment which prevailed during the last financial year,” he says.

“Needless to say, each part of our business was placed under significant pressure during FY09.

“We remain confident that the fundamentals of the markets in which we operate are still sound despite the tumultuous events of the last 12 months and that long-term projections for transportation in Australia continue to be strong.

Davis made it clear MaxiTrans - the parent company of trailer brands Freighter, Peki and Hamelex White - was well on the way to a full recovery, having improved order inquiries and intake since May - a trend it expects to continue.

On top of this, the company’s overall profit is expected to improve by the end of the year, something Davis puts down to a strong management team and a high strength of business.

“Subject to any unforeseen circumstances and to order intake at current levels, we expect net profit after tax for the six month period to December 31 to exceed budget and be equivalent to approximately 40 percent of underlying net profit after tax for the previous corresponding period,” he reported.

“We are confident that prospects for the rural sector continue to be positive due to good rainfall and crop yields and our parts business has started the year strongly as a result of the improvement in market conditions and new products launched during the financial year 2009."

But the Chairman makes it clear it is not time to lie back and relax.

“There are still a number of risks and uncertainties confronting the global and domestic economy and credit conditions remain tight,” Davis says.