MaxiTRANS says order intake was up by 29 percent in the nine months to March 31, compared with the same period last financial year
June 2, 2010
Australia’s largest trailer manufacturer MaxiTRANS Industries says order intake was up by 29 percent in the nine months to March 31, compared with the same period last financial year.
For the quarter ended March 31, order intake was up by 51 percent, signalling an improved outlook for the remainder of FY 2010.
In a recent trading update lodged with the Australian Securities Exchange, the company reported its Colrain parts business continues to build on the strong performance posted in the first half of FY 2010.
The release of new transportation regulations in New Zealand is expected to result in improved market conditions as operators move to take advantage of increases in allowable dimensions and weights.
“These improvements have been achieved notwithstanding further increases in interest rates and the softening of certain areas of the domestic economy not related to the mining/resource sectors,” the company says.
“Recently, however, the rate of order intake across some product categories has slowed, notably in refrigerated vans and the tipper segment where the construction/infrastructure sector continues to be depressed.
“The stimulatory impact of the Federal Government’s investment allowance has dissipated and access to credit remains a concern for transportation operators, continuing to hamper sustained growth in our markets. Current order banks extend to early/mid June.”
Considering the current state of the market and the prevailing economic climate, MaxiTRANS’ directors believe that, based on unaudited internal management accounts, underlying net profit after tax for the full year to June 30 is likely to be in the order of 25 percent higher than the underlying net profit after tax of $5.2 million for FY 2009 (which excluded a non-cash impairment charge of $6.137 million and restructuring costs of $1 million after tax).
The estimated result for FY 2010 reflects a net profit after tax for the second half of $3.9 million compared with an underlying net loss of $610,000 in the corresponding period of 2009 – and a 53 percent increase in net profit after tax for the second half of 2010 compared with the first half.
MaxiTRANS posted a net profit after tax of $2.6 million for the half year ended December 31, on 17 percent lower sales revenue of $124.8 million, substantially ahead of the $283,000 loss recorded in the corresponding period of2008.
MXI’s strong balance sheet, low debt levels and experienced management team positions the company to take advantage of appropriate expansion opportunities in the marketplace, the company says.