<PAGE>   1





                       SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549

                                   FORM 10-Q

                  QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

     For Quarter Ended September 30, 1997 Commission File Number 0-4539

                             TRANS-INDUSTRIES, INC.

             (Exact name of registrant as specified in its charter)


                Delaware                           13-2598139
     -------------------------------  ------------------------------------
     (State or other jurisdiction of  (I.R.S. Employer Identification No.)
     incorporation or organization)


                 2637 S. Adams Road, Rochester Hills, MI  48309
                 ----------------------------------------------
                       (Address)                  (Zip Code)

       Registrant's Telephone Number, including Area Code (248) 852-1990

     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities and Exchange Act
of 1934 during the preceding 12 months and (2) has been subject to such filing
requirements for the past 90 days.  YES   X      NO
                                         ---         ---
The number of shares outstanding of registrant's Common stock, par value $.10
per share, at September 30, 1997 was 3,073,200.


<PAGE>   2


                TRANS-INDUSTRIES, INC. AND SUBSIDIARY COMPANIES

              FORM 10-Q - FOR THE QUARTER ENDED SEPTEMBER 30, 1997

                                     INDEX


PART I.   Financial Information


Item 1.         FINANCIAL STATEMENTS
        
                A.    Consolidated Statements of Operations ---
                        Three months ended September 30, 1997 and 1996.
                        Nine months ended September 30, 1997 and 1996.

                B.    Consolidated Balance Sheets ---
                        September 30, 1997 and December 31, 1996.
        
                C.    Consolidated Statements of Cash Flows ---
                        Nine months ended September 30, 1997 and 1996.

                D.    Notes to Consolidated Financial Statements.



Item 2.         MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
                RESULTS OF OPERATIONS


PART II.  Other Information

Item 1.         LEGAL PROCEEDINGS
        
Item 5.         OTHER INFORMATION
        
Item 6.         EXHIBITS AND REPORTS ON FORM 8-K
        
                SIGNATURES


                                       2


<PAGE>   3
                    TRANS-INDUSTRIES, INC. AND SUBSIDIARIES
A.
               CONSOLIDATED STATEMENTS OF OPERATIONS  (Unaudited)



<TABLE>
<CAPTION>
                                                              For 3 Months Ended:          For 9 Months Ended:
                                                            ----------------------        ---------------------  
                                                            9/30/97        9/30/96        9/30/97       9/30/96
                                                            -------        -------        -------       -------  
<S>                                                         <C>            <C>          <C>           <C>
1.   Gross sales less discounts, returns and allowances     $9,357,536     $7,217,902   $26,637,033   $21,734,670

2.   Cost of goods sold                                      6,357,269      4,681,411    17,416,234    13,988,564
                                                            ----------     ----------   -----------   -----------
3.   Gross Profit                                            3,000,267      2,536,491     9,220,799     7,746,106

4.   Selling, general and administrative exp.                1,923,691      1,873,857     6,037,411     5,557,173
                                                            ----------     ----------   -----------   -----------

5.   Operating income/(loss)                                 1,076,576        662,634     3,183,388     2,188,933

6.   Other (income)/ expense
        Interest expense                                       150,461        193,909       483,635       615,661
        Other income                                           (15,295)       (20,045)     (198,347)      (81,428)
                                                            ----------     ----------   -----------   -----------
        Total other (income)/expense                           135,166        173,864       285,288       534,233
                                                            ----------     ----------   -----------   -----------
7.   Earnings/(loss) before income taxes                       941,410        488,770     2,898,100     1,654,700

8.   Income tax expense/(benefit)                              322,000        173,000       994,000       566,000
                                                            ----------     ----------   -----------   -----------
9.   Net profit/(loss)                                      $  619,410      $ 315,770   $ 1,904,100   $ 1,088,700
                                                            ==========      =========   ===========   ===========
10.  Earnings per share                                     $      .20      $     .10   $       .62   $       .36
                                                            ==========      =========   ===========   ===========
11.     Dividends per share                                         --             --            --            --
                                                            ==========      =========   ===========   ===========
</TABLE>


See Notes to Financial Statements

                                       3
<PAGE>   4
                    TRANS-INDUSTRIES, INC. AND SUBSIDIARIES
B.
                          CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
   ASSETS                                                           
                                                                    
Current Assets                            9/30/97     12/31/96      
                                        (Unaudited)   (Audited)     
                                        -----------  -----------    
<S>                                     <C>          <C>            
   Cash                                 $   220,212  $   358,764    
   Accounts receivable                    7,196,629    6,195,865    
   Inventories (Note 2)                   6,432,795    6,162,592    
   Prepaid expenses                         482,321      279,385    
   Deferred income taxes                    373,000      373,000    
                                        -----------  -----------    
                                                                    
   Total current assets                  14,704,957   13,369,606    
                                                                    
Property, Plant & Equipment, at Cost                                
                                                                    
   Land                                     314,503      370,814    
   Land Improvements                        126,660      126,660    
   Buildings                              5,268,550    5,234,892    
   Machinery & equipment                  7,191,786    6,582,016    
                                        -----------  -----------    
                                         12,901,499   12,314,382    

   Less:accumulated depreciation         (8,091,121)  (7,793,413)              
                                        -----------  -----------    
   Net plant and equipment                4,810,378    4,520,969    
                                        -----------  -----------    
Other Assets                                                        
                                                                    
   Investments in affiliates                 10,000       10,000    
                                                                    
   Patents, licenses & trademarks,                                  
   net of accumulated amortization          249,428      287,267    
                                                                    
   Excess of cost of investment in                                  
   stock of subsidiary over equity in                               
   underlying net assets of acquisition     189,426      222,854    
                                                                    
   Sundry                                   104,471      104,471    
                                        -----------  -----------    
                                                                    
Total assets                            $20,068,660  $18,515,167    
                                        ===========  ===========    
<CAPTION>
             LIABILITIES AND STOCKHOLDERS EQUITY                      
                                                                      
Current Liabilities                          9/30/97       12/31/96   
                                           (Unaudited)     (Audited)  
                                           -----------    ----------- 
<C>                                        <C>            <C>         
  Notes Payable (Note 5)                   $ 2,949,171    $ 2,539,142 
  Current installments                                                
      - Long term debt (Note 5)                160,570        250,243 
  Accounts payable - trade                   2,640,453      2,779,171 
  Accrued liabilities                        1,511,758      1,400,727 
  Income taxes                                 (96,000)       195,000 
                                           -----------    ----------- 
                                                                      
  Total current liabilities                  7,165,952      7,164,283 
                                                                      
  Deferred income taxes - Non-current          126,000        126,000 
                                                                      
Long term debt                                                        
                                                                      
  Current portion shown above (Note 5)       3,640,118      3,992,566 
  Other non-current liabilities                320,447        310,547 
                                                                      
Stockholders' Equity                                                  
                                                                      
                                                                      
Preferred stock of $1.00 par value                                    
  per share - authorized 500,000                                      
  shared; none issued                               --             -- 
                                                                      
  Common stock of $.10 par value per                                  
  share - authorized 10,000,000 shares;                               
  3,073,200 shares issued and 3,073,200                               
  outstanding at 9/30/97                       307,320        307,200 
                                                                      
  Additional paid-in  capital                4,062,116      4,053,985 
  Retained earnings                          4,465,784      2,561,684 
  Foreign currency translation                 (19,077)        (1,098)
                                           -----------    ----------- 
                                             8,816,143      6,921,771 
                                           -----------    ----------- 
                                                                      
Total liabilities and stockholders' equity $20,068,660    $18,515,167 
                                           ===========    =========== 
</TABLE>

See Notes to Financial Statements.

                                       4
<PAGE>   5
                             TRANS-INDUSTRIES, INC.
                     Consolidated Statements of Cash Flows
C.            For the Nine Months Ended September 30, 1997 and 1996


<TABLE>
<CAPTION>
                                                Nine Months Ended September 30
                                                ------------------------------
                                                      1997          1996
                                                      ----          ----
                                                   (Unaudited)   (Unaudited)
                                                   -----------   -----------
<S>                                                <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES     
Net income (loss)                                  $1,904,100    $1,088,700
Adjustments to reconcile net income (loss)     
to net cash provided by operations:     
  Depreciation/Amortization                           588,419       508,555
  Decrease (increase) in accts. receiv.            (1,000,764)      372,329
  Decrease (increase) in inventory                   (270,203)      186,773
  Decrease (increase) in prepaid exp.                (202,936)      170,428
  Increase (decrease) in accts. payable              (138,718)   (1,215,796)
  Increase (decrease) in accr. liab.                  111,031       308,051
  Increase (decrease) in income taxes                (291,000)     (415,000)
  (Gain) loss on sale of fixed assets                (136,689)      (21,402)
                                                   ----------    ----------
 Net Cash Provided (Used) by Operations               563,240       982,638

 CASH FLOWS FROM INVESTING ACTIVITIES
    Purchase of fixed assets                         (905,872)     (712,810)
    Proceeds from sale of property and equipment      236,000        47,000
                                                   ----------    ----------

 Net Cash Provided (Used) by Investing               (669,872)     (665,810)
                                                      
 CASH FLOWS FROM FINANCING ACTIVITIES                 
    Net increase (repayment) of long-term             
    borrowings                                       (432,221)     (622,571)
    Net proceeds (payment) of credit line             410,029       358,009
    Common stock issued through ESOP                    8,251           -0-
    Purchase of Treasury Stock                            -0-       (28,060)
                                                   ----------    ----------

 Net Cash Provided (Used) by Financing                (13,941)     (292,622)

 Foreign currency translation                         (17,979)       20,706
                                                   ----------    ----------

 Net Increase in Cash                                (138,552)       44,912
 Cash at beginning of year                            358,764       109,123
                                                   ----------    ----------
Cash at end of quarter                             $  220,212    $  154,035
                                                   ==========    ==========

Supplemental Disclosures:
   Interest paid                                   $  468,229    $  564,619
   Income taxes (refunded) paid, net               $1,285,000    $  981,000
</TABLE>

See notes to financial statements.

                                       5


<PAGE>   6


D.                  TRANS-INDUSTRIES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



1. Basis of Presentation

   The financial information presented as of any date other than December 31
   has been prepared from the Company's books and records without audit.
   Financial information as of December 31 has been derived from the audited
   financial statements of the Company.  In the opinion of management, all
   adjustments consisting of normal recurring adjustments, necessary for a fair
   presentation of the financial information for the periods indicated, have
   been included.  For further information regarding the Company's accounting
   policies, refer to the consolidated financial statements and related notes
   included in the Company's annual report on form 10-K for the year ended
   December 31, 1996.


2. Inventories

     The major components of inventories are:


<TABLE>
<CAPTION>
                                       9/30/97    12/31/96
                                     ----------  ----------
                    <S>              <C>         <C>

                    Raw Materials    $3,538,179  $3,213,861
                    Work in Process   1,091,509     976,993
                    Finished Goods    1,803,107   1,971,738
                                     ----------  ----------

                                     $6,432,795  $6,162,592
                                     ==========  ==========
</TABLE>




3. Principles of Consolidation

   There have been no significant changes in the principles of
   consolidation since our most recent audited financial statements.


4. Significant Accounting Policies

   There have been no significant changes in the accounting policies since
   our most recent audited financial statements.

                                       6


<PAGE>   7


D.                  TRANS-INDUSTRIES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


5. Long-Term Debt


<TABLE>
   <S>                                                                  <C>
   Long-term debt at September 30, 1997 consisted of the following:

   Trans-Industries, Inc., $3,840,000 term note, payable in             $3,504,667
   monthly installments of $39,333 which includes interest at 
   1/4% over the bank's prime lending rate, and a balloon payment 
   of $3,137,124 in October 1999.  The note is secured by 
   substantially all the assets of Trans-Industries, Inc. and 
   subsidiaries.

   Transmatic Europe Ltd., mortgage note, payable in monthly               173,795
   installments of $890 plus interest at 9.99%.  The mortgage is 
   secured by certain property and is due August 9, 2003.

   Term note, payable in monthly installments of $896                      115,485
   including interest at a rate of 6%.  The note is due 
   January 21, 2002.

   Other                                                                     6,741
                                                                        ----------
                                                                         3,800,688
   Less current installments                                              (160,570)
                                                                        ----------
   Long-term debt                                                       $3,640,118
                                                                        ==========
</TABLE>
                                       7


<PAGE>   8
                    TRANS-INDUSTRIES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


5. Long-Term Debt (continued)

   The Trans-Industries, Inc. term loan agreement contains restrictive
   provisions relating principally to the maintenance of working capital,
   net worth, ratio of debt to net worth, payment of dividends, and
   acquisition of fixed assets.  At September 30, 1997  the Company was in
   compliance with all provisions.

   The Company also has a secured $6,500,000 line of credit of which
   $2,949,171 was utilized at September 30, 1997.  Interest is charged at
   the bank's prime lending rate.  This line of credit expires on July 1,
   1999.  The line is secured by substantially all of the assets of
   Trans-Industries, Inc. and its domestic subsidiaries.

   In August, 1997 the remaining debenture was repurchased and retired,
   thus eliminating the possibility of conversion by the holder.  Prior to
   the date of repurchase the debenture was convertible, at $2.00/share,
   into 107,142 shares.

6. Stock Changes

   In December of 1996, 28,000 shares that were held as Treasury Stock were
   retired.

   In September of 1997, the Company received a request from an employee to     
   exercise her stock option for 1200 shares of common stock at a price of
   $6.875 per share.  Accordingly, the Company issued a certificate for 1200
   shares.









                                       8

<PAGE>   9
                    TRANS-INDUSTRIES, INC. AND SUBSIDIARIES

Item 2.         MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                      CONDITION AND RESULTS OF OPERATIONS

                    For Nine Months Ended September 30, 1997

Sales and Earnings

     Sales for the quarter ended September 30, 1997 were $9,357,536 compared to
$7,212,902 for the same period a year ago.  This increase of $2,144,634 is
primarily attributable to an increase in sales of the Company's electronic
variable message signs as well as higher volumes achieved in the sale of its'
lighting products.

     During the third quarter of 1997, the Company realized a net profit of
$619,410 on sales of $9,357,536.  For the same period of the prior year, the
Company reported net profit of $315,770 on sales of $7,217,902.  This increase
in net profit of $303,640 can be attributed to the increased sales volume
achieved.  Net profit per share for the third quarter was $.20 and $.10 for
1997 and 1996, respectively.  Net profit per share was computed on the adjusted
weighted average number of shares outstanding during the quarter for 1997 and
1996, which were 3,072,100 and 3,064,500, respectively.

Inventories

     Inventory valuation is based upon the lower of cost or market.  At
September 30, 1997, consolidated inventories were $6,432,795 compared to
$5,787,644 a year ago.  This increase of $645,151 is to accommodate the growth
in sales volume.

Interest

     Interest expense amounted to approximately $150,000 and $194,000 for the
third quarter of 1997 and 1996, respectively.  This decrease of $44,000 was the
result of average debt levels being less during the third quarter of 1997
compared to 1996.

Financial Conditions

     Current financial resources coupled with anticipated funds from operations
are expected to meet funding requirements for the remainder of the year, based
upon present needs.

                                       9


<PAGE>   10

                          PART II - OTHER INFORMATION



Item 1. LEGAL PROCEEDING

     The Company is the plaintiff in a patent infringement lawsuit.  During
November of 1993, an advisory jury recommended a decision in favor of the
Company.  In April of 1994, the judge concurred with the advisory jury and
ordered that the defendant be enjoined from any further manufacture, use, or
sale of the accused patented device.  It was also ordered that the defendant
pay approximately $3 million in damages.  During 1994, the defendant appealed
the case based on the lower courts interpretation of the law.  On May 2, 1995,
the Company was notified that the U.S. Circuit Court of Appeals changed the
District Courts ruling that the defendant literally infringed the patent
instead of infringement by equivalents.  Further the court of appeals remanded
the case back to the Federal District Court for further determination of
damages.  A final outcome is expected to be reached in 1997.  Because this
decision can be further appealed by the defendant, the ultimate award to the
Company will be recorded in the financial statements when realized.
Additionally, any award received by the Company will be net of certain
contingent legal fees related to the lawsuit.


Item 5. OTHER INFORMATION

     On August 6, 1997 the Company repurchased all remaining convertible
subordinated debentures outstanding.  This purchase eliminates the possibility
of any dilution of common stock which would have resulted from the conversion
of these debentures.


Item 6. EXHIBITS AND REPORTS ON FORM 8-K


     (b) Form 8K dated April 19, 1995, and Form 8K/A dated May 23, 1995; change
in registrants certifying accountant.

                                       10


<PAGE>   11

                                   SIGNATURES



     Pursuant to the requirements of the Securities Exchange Act of l934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                        TRANS-INDUSTRIES, INC.


Date:   November 10, 1997               /s/     Kai Kosanke
        -----------------               ---------------------------
                                        Kai Kosanke, Treasurer
                                        and Chief Financial Officer



Date:   November 10, 1997               /s/     Paul Clemo
        -----------------               ---------------------------
                                        Paul Clemo
                                        Assistant Treasurer



                                       11

<PAGE>   12
                                Exhibit Index
                                -------------


Exhibit No.                 Description
-----------                 -----------

  Ex 27                     Financial Data Schedule