Trailer business income slips in mixed market marked by good tipper demand
MaxiTrans has seen its first half net profits rise, in a performance that mirrors that of the sectors its equipment service.
The firm’s $6.07 million was 17 per cent above the prior corresponding period (pcp) total.
This was despite revenues of $171.6 million being 5 per cent down on the previous first half, with that “mainly attributable to an 8 per cent decrease in revenue for the Trailer Solutions business, partially offset by a 1 per cent increase in revenue from the Parts and Components businesses”.
“Whilst sales of the Freighter and Maxi-Cube products in Australia were down 28 per cent on pcp, unit sales of the tipper products were 67 per cent higher than pcp, capitalising on strong demand in the construction, agriculture and waste sectors,” the company reports.
“However, this product mix had an adverse impact on profit for the segment as margins on Freighter and Maxi-Cube are generally higher than the tipper products.”
It adds that a stronger tipper order bank at the end of the period and continuing good order intake “positions the Company well as it enters the second half of the financial year”.
Gross profit for the segment fell 21.4 per cent from the previous first half, to $5.28 million, while that for Maxi-Parts nearly doubled to $3.02 million.
“The Australian trailer business entered the second half with a bigger order bank than the same time last year,” MaxiTrans notes.
“Strong demand for tipper products, albeit at lower margins, continues as new infrastructure projects come on stream and optimism continues in the agriculture sector.
“Our tipper products are also gaining strong acceptance in the waste sector, evidenced by two of our top ten customers operating in that sector. A number of opportunities for Freighter and Maxi-CUBE also remain in the market.”