An­other big year of sales for

Big Rigs - - TRAILER FEATURE -

MAXITRANS con­tin­ues to see an im­prove­ment in con­di­tions for the Aus­tralian trailer mar­ket with new trailer regis­tra­tions in 2017 in­creas­ing 17 per cent over the prior year, rep­re­sent­ing the sec­ond year in a row of mar­ket growth.

This ap­pears to in­di­cate the start of the trailer equip­ment re­place­ment cy­cle.

MaxiTRANS has also con­tin­ued its long-term trend of in­creas­ing mar­ket share and an­nounced a net profit af­ter tax of $10.1 mil­lion for the year ended 30 June, 2018, with a 20 per cent to­tal rev­enue in­crease to $409.3 mil­lion.

The Aus­tralian Max­iPARTS busi­ness de­liv­ered 12 per cent rev­enue growth dur­ing the year as it con­tin­ued to ex­pand its prod­uct range.

As­sisted by the or­der to build 386 trail­ers for Coles Su­per­mar­kets, the Aus­tralian trailer busi­ness in­creased its unit sales by 17 per cent and rev­enue by 25 per cent.

The or­der, re­garded as the sin­gle largest or­der in the Aus­tralian trailer in­dus­try at the time, was com­pleted on bud­get and ahead of time, con­firm­ing the com­pany’s cre­den­tials to de­liver large-scale or­ders.

Since com­ple­tion of the Coles or­der, MaxiTRANS has also se­cured a num­ber of other high-vol­ume con­tracts, al­though not of the same mag­ni­tude as the Coles con­tract.

The Coles or­der drove the strong sales growth of Max­iCUBE re­frig­er­ated vans.

The com­pany also ex­pe­ri­enced strong sales growth of its Freighter brand prod­ucts as a re­sult of im­proved con­fi­dence in the gen­eral freight sec­tor. In ad­di­tion, the com­pany ex­pe­ri­enced a bet­ter than ex­pected launch of a stan­dard model trailer that can be de­liv­ered in a shorter lead time.

Chair­man Rob Wylie and man­ag­ing di­rec­tor Dean Jenk­ins said there was strong rev­enue growth in all busi­nesses, ex­cept for China.

“Both Aus­tralian and New Zealand busi­ness per­for­mance high­lights buoy­ant mar­ket con­di­tions,” they said.

“The trailer busi­nesses in Aus­tralia and New Zealand de­liv­ered 26 per cent rev­enue growth for the year.

“The strate­gic in­tent to drive sales vol­ume in­crease through our ex­ist­ing na­tional whole­sale and retail net­work of 20 lo­ca­tions to­gether with tight cost con­trol re­sulted in net mar­gin im­prove­ment over the prior year. This should con­tinue as the ben­e­fits of our na­tional foot­print start to be­come clearer to key fleet cus­tomers.

“Whilst still above av­er­age his­tor­i­cal lev­els, sales of our port­fo­lio of tip­per prod­ucts into in­fra­struc­ture con­struc­tion, agri­cul­ture and waste sec­tors de­clined from the ab­nor­mally high sales lev­els of the prior year.

“We ex­pect tip­per sales to re­main strong whilst in­vest­ment in in­fra­struc­ture con­struc­tion con­tin­ues.”

They said a solid pipe­line of prod­uct de­vel­op­ment ini­tia­tives to de­liver new in­no­va­tive so­lu­tions for their cus­tomers and cost re­duc­tions would con­tinue to de­liver in­cre­men­tal sales into the fu­ture.

“The cur­rent mar­ket con­di­tions are re­quir­ing our man­u­fac­tur­ing fa­cil­i­ties to in­crease pro­duc­tion rates to high lev­els over a sus­tained pe­riod. This chal­lenge, com­pounded by the sud­den and dra­matic shift in pro­duc­tion mix placed great strain on the man­u­fac­tur­ing fa­cil­i­ties, the im­pact of which was ex­pe­ri­enced in the last quar­ter of FY18, thus re­sult­ing in the trad­ing up­date in May, 2018.”

As fore­shad­owed last year, the New Zealand trailer mar­ket re­bounded af­ter the pe­riod of un­cer­tainty sur­round­ing the trans­port reg­u­la­tion changes. This, com­bined with a num­ber of customer con­tract changes drove a 45 per cent in­crease in trailer unit sales.

In ad­di­tion, the busi­ness es­tab­lished its first per­ma­nent pres­ence in the South Is­land dur­ing the year by open­ing a new ser­vice fa­cil­ity in Christchurch. This has been well re­ceived by

PHOTO: CON­TRIB­UTED

SKY’S THE LIMIT: MaxiTRANS has con­tin­ued its trend of in­creas­ing mar­ket share and an­nounced a net profit af­ter tax of $10.1 mil­lion.

The com­pany ex­pects tip­per sales to re­main strong while in­vest­ment in in­fra­struc­ture con­struc­tion con­tin­ues.

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