warns net profit to be down 10pc

Sydney - Wednesday - June 14: (RWE Australian Business News) -
MaxiTRANS Industries Ltd (ASX code: MXI) today clarified that its net
profit, excluding significant items of expense, for the year ending June
30 was expected to be around 10 per cent lower than the prior
corresponding period.
In response to a query from the ASX a month ago as to whether
profit would vary from the previous year by more than 15 per cent, the
company had answered "no".
It today said that with the benefit from programs designed to
increase operational efficiency, including robotics, the company
expected to achieve an increase in earnings in 2007. This outlook was
predicated on no further softening of the current market conditions.

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In its half-year announcements MaxiTRANS indicated that it
expected an upturn in order intake for Freighter products and a return
to profitability for Colrain following a major restructuring.
Since January 2006 demand for Freighter trailers has softened to
the extent that it has found it necessary to reduce build rates and
reduce the casual workforce at the Ballarat plant.
While demand for Maxi-CUBE vans has been strong year-to-date,
the company is now experiencing a slowdown in order intake, but notes
there is an encouraging amount of order enquiry and quotation for
delivery in 2007.
Peki has also experienced a slowdown in order intake. Despite a
negative contribution for the first half 2006, Peki will make a positive
contribution to the group result for the full year.
Lusty EMS has experienced an upturn in demand over the past
three months. Demand for Hamelex White products has remained relatively
subdued. While MaxiTRANS New Zealand will achieve record earnings in
2006 this was largely achieved in the first half, with demand in the New
Zealand trailer market softening since January.
While Colrain has put in place a new sales structure and made
progress in revamping the warehousing and distribution functions, the
wholesale and manufacturing operations have continued to underperform,
particularly in April when a significant loss was incurred, due in the
main to very poor sales, which appeared to be an industry-wide issue.
Accordingly, contrary to the company's expectations, Colrain
will not make a positive contribution for the second half.
Shares in MaxiTRANS fell 8.5c to 58c today.