Trans-Industries, Inc. Reports 2004 Second-Quarter and Six-Month Results

Trans-Industries, Inc. Reports 2004 Second-Quarter and Six-Month
Results 


ROCHESTER HILLS, Mich., Aug. 16  /PRNewswire-FirstCall/ -- Trans-Industries,
Inc. (NASDAQ:TRNI), a manufacturer of bus lighting systems and information
display products, announced results for the second quarter and six months
ending June 30, 2004.

Sales were $7.7 million for the quarter.  This represented a decline of 9.9
percent from sales of $8.5 million for the three months ended June 30, 2003. 
This decline was concentrated in the lighting products business segment and
resulted primarily from a decrease in the level of bus production from that of
the previous year.  Moreover, in the current quarter, the Company shipped a
limited number of luggage lofts, which have higher dollar content per bus than
regular lighting products.  While sales of digital information products
improved, such sales were insufficient to offset the decrease in lighting
shipments noted above.  These same factors resulted in a sales decrease of $2.0
million, or 11.4 percent, to $15.2 million for the current period from $17.2
million for the six-month period ended June 30, 2003.

A loss of $2.6 million was incurred for the quarter, consisting of $344,000
from operations in addition to $2.3 million from the establishment of an
additional inventory reserve.  This inventory reserve resulted from several
factors that impacted the Company's operations during the quarter.  In early
March, management changes were effected including the appointment of a new
President and Chief Operating Officer.  The Company's existing product
offerings were analyzed and some have been curtailed, and personnel has been
further reduced, thereby reducing product absorption.  In light of a decline in
sales during the second quarter and the changed business direction, it was
determined a portion of the inventory would not be used going forward.  Cost
reduction opportunities continued to be emphasized with formal programs
initiated in all cost segments.  However, savings from these programs are not
expected to be realized in full until later in the year as legacy costs in the
form of severance payments continued throughout the quarter.

The Company believes its system for purchasing materials, particularly in the
digital information systems operation, improved in the period as better
utilization of the material requirements production system initiated last year
provided needed information for enhanced scheduling against available
inventory.

The Company has been operating under a forbearance agreement with Comerica
Bank, its present lender until January 2005.  Efforts to locate another lender
to replace the Comerica credit have been ongoing and the Company anticipates
finalizing credit arrangements with a new lender by September 1, 2004.

About the Company:

The Company is a leading provider of lighting systems and related components to
the mass transit market as well as a supplier of information hardware and
software solutions on Intelligent Transportation Systems (ITS) and mass transit
projects. ITS utilizes integrated networks of electronic sensors, signs and
software to monitor road conditions, communicate information to drivers and
help transportation authorities better manage traffic flow across their
existing infrastructures.

Forward-Looking Statements:

Except for statements of historical fact, this news release contains certain
forward-looking statements about the Company. Such statements are subject to
significant risks and uncertainties including changes in economic and market
conditions, management of growth, and other risks noted in the Company's SEC
filings, which may cause actual results to differ materially. We have used
words such as "may," "will," "expect," "anticipate," "believe," "estimate,"
"plan," "intend," and similar expressions in this press release to identify
forward-looking statements.  The Company's actual results may differ from those
set forth in such statements.  Significant changes in economic conditions,
regulatory or legislative changes affecting Trans-Industries, Inc., its
competitors, or the markets in which it is active, or changes in other factors
may cause future results to vary from those expected by the Company.  The
Company believes any forward-looking statements it has made are based on
current management expectations and they are subject to risks and
uncertainties.  These risks and uncertainties include, but are not limited to
the following:

   -- The potential inability to close the refinancing of the Company's bank
      debt;
   -- The continued forbearance by the Company's bank lender of their right
      to call the debt now due;
   -- A further decline of economic conditions in general and in the mass
      transit industry in particular;
   -- Changes in customer requirements or reduced demand for the Company's
      products and services;
   -- The inability of the Company to successfully implement its
      restructuring program in the informational systems business;
   -- Competitive factors (including the introduction or enhancement of
      competitive products and their successful introduction into the
      marketplace);
   -- Product pricing decreased and component price increases that may
      result in materially reduced gross profit margins for the Company's
      product;
   -- Unforeseen increases in operating expenses;
   -- The inability to attract or retain management, sales, or engineering
      talent; and
   -- The success of management's decision to change the business direction.

         Visit Trans-Industries at http://www.transindustries.com/


                            Trans-Industries, Inc.
                    Sales and Earnings Report (Unaudited)
                                 June 30,2004

                            Second Quarter Ending      Six Months Ending
                                   June 30                  June 30
                              2004        2003         2004         2003

  Sales                    $7,697,537  $8,542,959  $15,232,466  $17,192,759
  Cost of Sales             7,988,935   5,862,470   13,594,809   11,921,401
    Gross Profit             (291,398)  2,680,489    1,637,657    5,271,358

  Selling, Gen. & Admin.
   Exp.                     2,141,985   2,657,598    4,107,318    5,295,986
  Interest                    161,068     161,720      323,576      331,769
  Restructuring Costs          53,397           0      128,998      272,859
  Other                        (4,280)     (1,999)     (11,211)      (2,008)
    Total Expenses          2,352,170   2,817,319    4,548,681    5,898,606

  Loss Before Income
   Taxes                   (2,643,568)   (136,830)  (2,911,024)    (627,248)

  Income Taxes                      0           0            0      (17,000)
    Net Loss               (2,643,568)   (136,830)  (2,911,024)    (610,248)
  Preferred Dividend          (24,792)          0      (24,792)           0
  Net Loss Available to
   Common Shareholders    $(2,668,360)  $(136,830) $(2,935,816)   $(610,248)
  Loss Per Share
    Basic                      $(0.85)     $(0.04)      $(0.94)      $(0.19)

  *2004, includes set-up of inventory reserves of $2.3 million

  Weighted Average Number
   of Shares Outstanding    3,139,700   3,139,700    3,139,700    3,139,700


                   Consolidated Balance Sheet (Unaudited)

                                                 Second Quarter Ending
                                                        June 30
  Assets:                                        2004             2003

  Total Current Assets                       $13,162,987       $21,190,924
  Net Fixed Assets                             3,476,926         3,966,894
  Other Assets                                   159,442           282,523
    Total Assets                             $16,799,355       $25,440,341

  Liabilities and Shareholders' Equity:

  Total Current Liabilities                  $13,010,078       $16,367,399
  Deferred Income Taxes                                0           458,000
  Long Term Debt                                 292,896           322,816
  Shareholders' Equity                         3,496,381         8,292,126
    Total Liabilities and
     Shareholders' Equity                    $16,799,355       $25,440,341


Website:  http://www.transindustries.com 

DATASOURCE: Trans-Industries, Inc.



CONTACT:  Kai Kosanke, Chief Financial Officer of Trans-Industries,

[phone]

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