<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, 1996      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 Adams Road, Rochester Hills, MI  48309
                  -------------------------------------------

                         (Address)          (Zip Code)

       Registrant's Telephone Number, including Area Code (810) 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, 1996 was 3,072,000.


<PAGE>   2



                TRANS-INDUSTRIES, INC. AND SUBSIDIARY COMPANIES

              FORM 10-Q - FOR THE QUARTER ENDED SEPTEMBER 30, 1996

                                     INDEX


PART I.   Financial Information


Item 1. FINANCIAL STATEMENTS

     A. Consolidated Statements of Operations ---
          Three months ended September 30, 1996 and 1995.
          Nine months ended September 30, 1996 and 1995.

     B. Consolidated Balance Sheets ---
          September 30, 1996 and December 31, 1995.

     C. Consolidated Statements of Cash Flows ---
          Nine months ended September 30, 1996 and 1995.

     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 6.         EXHIBITS AND REPORTS ON FORM 8-K

                SIGNATURES

                                       2



<PAGE>   3

              


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



<TABLE>

                                                         For 3 Months Ended:         For 9 Months Ended:
                                                         --------------------------  --------------------------
                                                              9/30/96       9/30/95       9/30/96       9/30/95
                                                           ----------    ----------   -----------   -----------
<S>                                                       <C>           <C>           <C>           <C>
1.   Gross sales less discounts, returns and allowances    $7,217,902    $6,549,057   $21,734,670   $17,738,266

2.   Cost of goods sold                                     4,681,411     4,315,931    13,988,564    12,306,202
                                                           ----------    ----------   -----------   -----------
3.   Gross Profit                                           2,536,491     2,233,126     7,746,106     5,432,064

4.   Selling, general and administrative exp.               1,873,857     1,526,453     5,557,173     4,404,330
                                                           ----------    ----------   -----------   -----------
5.   Operating income/(loss)                                  662,634       706,673     2,188,933     1,027,734

6.   Other (income)/ expense
     Interest expense                                         193,909       238,418       615,661       702,217
     Other income                                             (20,045)          (85)      (81,428)     (125,009)
                                                           ----------    ----------   -----------   -----------
      Total other (income)/expense                            173,864       238,333       534,233       577,208
                                                           ----------    ----------   -----------   -----------
7.   Earnings/(loss) before income taxes                      488,770       468,340     1,654,700       450,526
   
8.   Income tax expense/(benefit)                             173,000       156,000       566,000       130,000
                                                           ----------    ----------   -----------   -----------
9.   Net profit/(loss)                                       $315,770      $312,340    $1,088,700    $  320,526
                                                           ==========    ==========   ===========   ===========
10.  Earnings per share                                          $.10          $.11          $.36          $.11
                                                           ==========    ==========   ===========   ===========
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                                   9/30/96              12/31/95   
                                               (Unaudited)          ( Audited )
                                               ---------          ------------
<S>                                         <C>                    <C>
     Cash                                    $   154,035             $   109,123        
     Accounts receivable                       6,474,348               6,846,677        
     Inventories (Note 2)                      5,787,644               5,974,417        
     Prepaid expenses                            141,438                 311,866        
     Deferred income taxes                       316,000                 316,000        
                                             -----------             -----------        
     Total current assets                     12,873,465              13,558,083        
                                                                                        
Property, Plant & Equipment, at Cost                                                    
                                                                                        
     Land                                        370,813                 382,519         
     Land improvements                           126,660                 126,660         
     Buildings                                 5,231,670               5,298,437         
     Machinery & equipment                     6,287,093               6,056,769         
                                             -----------             -----------        
                                              12,016,236              11,864,385         
     Less: accumulated                                                                  
           depreciation                       (7,663,675)             (7,758,344)               
                                             -----------             -----------        
     Net plant and equipment                   4,352,561               4,106,041        
                                             -----------             -----------        
                                                                                
                                                                   
Other Assets                                                                              
                                                                                          
     Investments in affiliates                    10,000                  10,000          
                                                                           
     Patents, licenses & trademarks,                                                      
       net of accumulated amortization            36,752                  34,159          
                                                                      
     Excess of cost of investment in                                                      
       stock of subsidiary over equity in             
       underlying net assets of acquisition      233,997                 267,425          
                                               
                                                                     
     Sundry                                      135,302                 172,331          
                                             -----------              ----------
                                                                    
Total assets                                 $17,642,077             $18,148,039          
                                             ===========             ===========
                                                 
<CAPTION> 
                                                                        
LIABILITIES AND STOCKHOLDERS EQUITY                                                                       

Current Liabilities                           9/30/96                  12/31/95             
                                            (Unaudited)             (   Audited )           
                                           -------------            ------------ 
<S>                                         <C>                    <C>
     Notes payable (Note 5)                  $ 3,339,797             $ 2,981,788           
     Current installments                                                                  
       - Long term debt (Note 5)                 196,545                 680,233           
     Accounts payable - trade                  1,886,160               3,101,956           
     Accrued liabilities                       1,357,061               1,049,010           
     Income taxes                                  8,000                 423,000           
                                             -----------             -----------
                                                                        
     Total current liabilities                 6,787,563               8,235,987                              
                                                                         
     Deferred Income Taxes - Non-current         223,000                 223,000                             
                                                                                           
Long term debt -                                                                           
                                                                       
     Current portion shown above (Note 5)      4,138,176               4,271,314                 
     Other non-current liabilities               325,619                 331,364                       
                                                                                           
Stockholders' Equity                                                                       
                                                                                           
     Preferred stock of $1.00 par value                                                    
     per share - authorized 500,000                                      
     shares; none issued                            --                       --                             
                                                                                           
     Common stock of $.10 par value per share                                              
     - authorized 10,000,000 shares;                                       
     3,100,000 shares issued and                                         
     3,072,000  at 9/30/96                       310,000                 310,000   
                                                                                   
     Treasury Stock                            (   2,800)              (   2,300)  
     Additional paid-in capital                4,053,986               4,081,546   
     Retained earnings                         1,927,625                 838,926   
     Foreign currency translation              ( 121,092)              ( 141,798)   
                                               ---------               ---------
                                               6,167,719               5,086,374   
                                               ---------               ---------                    
Total liabilities and                                                
stockholders' equity                         $17,642,077             $18,148,039   
                                             ===========             ===========   

</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, 1996 and 1995


<TABLE>
<CAPTION>
                                                Nine Months Ended September 30 
                                              ---------------------------------
                                                   1996             1995       
                                              ----------------  ---------------
                                                ( Unaudited)    ( Unaudited)   
                                              ----------------  ---------------
                                                                               
CASH FLOWS FROM OPERATING ACTIVITIES                                           
                                                                               
<S>                                               <C>           <C>            
Net income (loss)                                 $ 1,088,700   $    320,526   
Adjustments to reconcile net income (loss)                                     
to net cash provided by operations:                                            
                                                                               
   Depreciation/Amortization                          508,555        488,637   
   Decrease (increase) in accts. receiv.              372,329   (  1,733,463)  
   Decrease (increase) in inventory                   186,773   (  1,019,836)  
   Decrease (increase) in prepaid exp.                170,428   (    146,322)  
   Increase (decrease) in accts. payable          ( 1,215,796)       382,634   
   Increase (decrease) in accr. liab.                  308,051        77,596   
   Increase (decrease) in income taxes            (   415,000)       130,000   
   Disposal of fixed assets                            10,228         45,000   
   (Gain) loss on sale of fixed assets            (    31,630)  (      7,338)  
                                                  -----------    -----------   
                                                                               
Net Cash Provided (Used) by Operations                982,638   (  1,462,566)  
                                                                               
                                                                               
CASH FLOWS FROM INVESTING ACTIVITIES                                           
                                                                               
   Purchase of fixed assets                       (   712,810)  (    142,475)  
   Proceeds from sale of property  and equipment       47,000         75,000   
                                                  -----------    -----------   
Net Cash Provided (Used) by Investing             (   665,810)  (     67,475)  
                                                                               
CASH FLOWS FROM FINANCING ACTIVITIES                                           
     Net increase (repayment) of long-term                                     
       borrowings                                 (   622,571)  (    174,703)  
     Net proceeds (payment) of credit line            358,009      1,768,741   
     Purchase of Treasury Stock                   (    28,060)            -0-  
                                                  -----------    -----------   
                                                                               
Net Cash Provided (Used) by Financing             (   292,622)     1,594,038   
                                                                               
Foreign currency translation                           20,706          7,623   
                                                  -----------    -----------   
                                                                               
Net Increase in Cash                                   44,912         71,620   
Cash at beginning of year                             109,123         27,739   
                                                  -----------    -----------   
Cash at end of quarter                            $   154,035    $    99,359   
                                                  ===========    ===========   
Supplemental Disclosures:                                                      
     Interest paid                                $   564,619    $   612,054   
     Income taxes (refunded) paid, net            $   981,000    $        -0-  
</TABLE>                                                                       


                                      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, 1995.


2. Inventories

   The major components of inventories are:


<TABLE>
<CAPTION>
                                9/30/96    12/31/95
                               ----------  ----------
              <S>              <C>         <C>
              Raw Materials    $3,396,402  $3,860,239
              Work in Process     801,219     513,525
              Finished Goods    1,590,023   1,600,653
                               ----------  ----------

                               $5,787,644  $5,974,417
                               ==========  ==========
</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

   Long-term debt at September 30, 1996 consisted of the following:

   Trans-Industries, Inc., $3,840,000 term note, payable in        $3,654,720
   monthly installments of $40,496 which
   includes interest at 1% over the bank's prime
   lending rate, and a balloon payment of
   $3,179,777 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          188,619
   installments of $890 plus interest at 9.99%.
   The mortgage is secured by certain property
   and is due August 9, 2003.

   Trans-Industries, Inc., $300,000 convertible subordinated          257,142
   debentures, payable in annual installments of
   $42,858 plus interest at 10%.  Interest is
   payable quarterly commencing March 15, 1992.
   The debentures are due December 30, 2001.

   Term note, payable in monthly installments of $3,229,               87,191
   including interest at 1.25% above the bank's
   prime lending rate.  The note is due January
   1, 1999.


   Term note, payable in monthly installments of $896                 117,383
   including interest at a rate of 6%.  
   The note is due January 21, 2002.

   Other                                                               29,666


                                                                   -----------
                                                                    4,334,721
   Less current installments                                         (196,545)
                                                                   -----------
   Long-term debt                                                  $4,138,176
                                                                   ===========


                                      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, 1996  the Company was in
   compliance with all provisions.

   The Company also has a secured $6,500,000 line of credit of which
   $3,339,797 was utilized at September 30, 1996.  Interest is charged at
   3/4% over the bank's prime lending rate.  This line of credit expires on
   July 1, 1997.  The line is secured by substantially all of the assets of
   Trans-Industries, Inc. and its domestic subsidiaries.

6. Stock Changes

   In July of 1996, 5000 shares of stock were repurchased and are currently
   being held as Treasury Stock.


                                      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, 1996

Sales and Earnings
   
     Sales for the quarter ended September 30, 1996 were $7,217,902 compared to
$6,549,057 for the same period a year ago.  This increase of $668,845 is
primarily attributable to an increase in sales of the Company's electronic
destination signs for use on intercity transit buses.

     During the third quarter of 1996, the Company realized a net profit of
$315,770 on sales of $7,217,902.  For the same period of the prior year, the
Company reported net profit of $312,340 on sales of $6,549,057.  This slight
increase of $3,430.00 on a higher sales volume was depressed due to a final
write down of a receivable in the third quarter of 1996 which amounted to
$113,000.00 pre tax.  Profit/(loss) per share for the third quarter was $.10
and $.11 for 1996 and 1995, respectively.  Profit/(loss) per share was computed
on the adjusted weighted average number of shares outstanding during the
quarter for 1996 and 1995, which were 3,064,500 and 2,927,000, respectively.

Inventories

     Inventory valuation is based upon the lower of cost or market.
Comparatively, inventory levels remained relatively constant.  At September 30,
1996, consolidated inventories were $5,787,644 compared to $5,837,661 a year
ago.

Interest

     Interest expense amounted to approximately $194,000 and $238,000 for the
third quarter of 1996 and 1995 respectively.  This decrease of $44,000 was the
result of slightly lower interest rates in 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 1996.  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 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:    11/5/96               /s/ Kai Kosanke
               ----------------          -----------------------------
                                         Kai Kosanke, Treasurer
                                         and Chief Financial Officer



          Date:    11/5/96               /s/ Paul Clemo
               ----------------          -----------------------------
                                         Paul Clemo
                                         Assistant Treasurer



                                       11










<PAGE>   12
                                EXHIBIT INDEX


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

27                              Financial Data Schedule