Financial crisis hits MaxiTrans

MaxiTrans forced to cut jobs, slash salaries and reduce operations as profits plummet in the face of the worldwide recession

By Michael House | April 28, 2009

Trailer manufacturer MaxiTrans will be forced to cut jobs, slash salaries and reduce its operations as its profits plummet in the face of the worldwide recession.

MaxiTrans is expecting a 75 percent drop in profits by June as a result of the global financial crisis, leading the company to institute a number of radical measures in an attempt to offset the loss.

"The board and management have taken a number of steps to manage costs and preserve cash and have continued to focus aggressively on sales activities to take advantage in the market place," MaxiTrans Chairman Ian Davis says.

"Amongst other things staff numbers have been adjusted to match current and anticipated demand, reduced working weeks have been implemented where possible, pricing has been renegotiated with key suppliers and the directors and senior management team have accepted a 10 percent reduction in fees and salaries.

While some analysts saying the financial crisis has created a "window of opportunity" for operators to purchase equipment at lower prices, MaxiTrans is still struggling.

"Despite further interest rate reduction, the 30 percent investment allowance and other government initiatives to stimulate economic activity, each of our key markets have contracted further and order intake has continued to fall," Davis says.

It has been a rapid reversal in fortunes for the manufacturer, with MaxiTrans this time last year announcing record order intakes and sales.

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