<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 March 31, 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 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 March 31, 1997 was 3,072,000.

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                TRANS-INDUSTRIES, INC. AND SUBSIDIARY COMPANIES

                FORM 10-Q - FOR THE QUARTER ENDED MARCH 31, 1997

                                     INDEX


PART I.   Financial Information


Item 1. FINANCIAL STATEMENTS

        A. Consolidated Statements of Operations ---
             Three months ended March 31, 1997 and 1996.

        B. Consolidated Balance Sheets ---
             March 31, 1997 and December 31, 1996.

        C. Consolidated Statements of Cash Flows ---
             Three months ended March 31, 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 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:
                                                         --------------------------
                                                            3/31/97       3/31/96
                                                         ------------  ------------
<S>                                                        <C>           <C>
 1.  Gross sales less discounts, returns and allowances    $7,989,776    $7,166,092

 2.  Cost of goods sold                                     5,038,495     4,523,557
                                                           ----------    ----------
 3.  Gross Profit                                           2,951,281     2,642,535

 4.  Selling, general and administrative exp.               1,986,580     1,832,532
                                                           ----------    ----------
 5.  Operating income/(loss)                                  964,701       810,003

 6.  Other (income)/ expense
        Interest expense                                      175,723       217,489
        Other income                                         (169,090)      (42,150)
                                                           ----------    ----------
        Total other (income)/expense                            6,633       175,339
                                                           ----------    ----------
 7.  Earnings/(loss) before income taxes                      958,068       634,664

 8.  Income tax expense/(benefit)                             337,000       211,000
                                                           ----------    ----------
 9.  Net profit/(loss)                                     $  621,068    $  423,664
                                                           ==========    ==========
10.  Earnings per share                                    $      .20    $      .14
                                                           ==========    ==========
11.  Dividends per share                                       --            --
                                                           ==========    ==========
</TABLE>

See Notes to Financial Statements


                                       3



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

  ASSETS                                                            

<TABLE>
<CAPTION>
                                                                     
Current Assets                                3/31/97                 12/31/96    
                                            (Unaudited)               (Audited)   
                                            -----------               ---------  
<S>                                         <C>                      <C>        
  Cash                                      $   169,734              $   358,764   
  Accounts receivable                         6,866,497                6,195,865    
  Inventories (Note 2)                        6,479,327                6,162,592    
  Prepaid expenses                              318,622                  279,385    
  Deferred income taxes                         373,000                  373,000    
                                            -----------              -----------  
                                                                     
  Total current assets                       14,207,180               13,369,606    
                                                                     
Property, Plant & Equipment, at Cost                                 
                                                                     
  Land                                          314,503                  370,814    
  Land Improvements                             126,660                  126,660    
  Buildings                                   5,228,276                5,234,892    
  Machinery & equipment                       6,660,448                6,582,016    
                                            -----------              -----------  
                                             12,329,887               12,314,382    
  Less: accumulated                                            
        depreciation                         (7,873,861)              (7,793,413)   
                                            -----------              -----------  
  Net plant and equipment                     4,456,026                4,520,969    
                                            -----------              -----------  
Other Assets                                                         
                                                                     
  Investments in affiliates                      10,000                   10,000    
                                                                     
  Patents, licenses & trademarks,                                   
  net of accumulated amortization               275,773                  287,267    
                                                                     
  Excess of cost of investment in                                   
  stock of subsidiary over equity in                                
  underlying net assets of acquisition          211,711                  222,854    
                                                                     
  Sundry                                        104,471                  104,471    
                                            -----------              -----------  
                                                                     
Total assets                                $19,265,161              $18,515,167  
                                            ===========              ===========  
</TABLE>

  LIABILITIES AND STOCKHOLDERS EQUITY                             

<TABLE>
<CAPTION>                                                                                
Current Liabilities                            3/31/97                  12/31/96
                                             (Unaudited)               (Audited)
                                             -----------               ---------
<S>                                         <C>                      <C>        
  Notes Payable (Note 5)                    $ 3,050,959              $ 2,539,142
  Current installments                                                          
      - Long term debt (Note 5)                 202,725                  250,243
  Accounts payable - trade                    2,513,841                2,779,171
  Accrued liabilities                         1,330,400                1,400,727
                                                                                
  Income taxes                                  332,000                  195,000
                                            -----------              -----------  
                                                                                
  Total current liabilities                   7,429,925                7,164,283
                                                                                
  Deferred income taxes - Non-current           126,000                  126,000
                                                                                
Long term debt                                                                  
                                                                                
  Current portion shown above (Note 5)        3,890,461                3,992,566
  Other non-current liabilities                 313,847                  310,547
                                                                                
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;                                         
  3,072,000 shares issued and 3,072,000                                         
  outstanding at 3/31/97                        307,200                  307,200
                                                                                
  Additional paid-in  capital                 4,053,985                4,053,985
  Retained earnings                           3,182,752                2,561,684
  Foreign currency translation                  (39,009)                  (1,098)
                                            -----------              -----------  
                                              7,504,928                6,921,771
                                            -----------              -----------  
                                                                                
Total liabilities and stockholders' equity  $19,265,161              $18,515,167
</TABLE>                                    ===========              ===========

See notes to Financial Statements.

                                       4
                                                                  
  
<PAGE>   5


                             TRANS-INDUSTRIES, INC.
                     Consolidated Statements of Cash Flows
C.            For the Three Months Ended March 31, 1997 and 1996


<TABLE>
<CAPTION>
                                                        Three Months Ended March 31
                                                       ----------------------------
                                                          1997             1996
                                                       -----------      -----------
                                                       (Unaudited)      (Unaudited)
                                                       -----------      -----------
<S>                                                     <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)                                       $ 621,068       $ 423,664
Adjustments to reconcile net income (loss)
to net cash provided by operations:
  Depreciation/Amortization                               199,573         168,327
  Decrease (increase) in accts. receiv.                  (670,632)       (444,748)
  Decrease (increase) in inventory                       (316,735)         38,800
  Decrease (increase) in prepaid exp.                     (43,237)         15,269
  Increase (decrease) in accts. payable                  (265,330)       (245,799)
  Increase (decrease) in accr. liab.                      (70,327)         37,415
  Increase (decrease) in income taxes                     137,000        (209,000)
  (Gain) loss on sale of fixed assets                    (148,689)        (30,730)
                                                        ---------       ---------

Net Cash Provided (Used) by Operations                   (557,309)       (246,802)

CASH FLOWS FROM INVESTING ACTIVITIES
   Purchase of fixed assets                              (164,304)       (189,890)
   Proceeds from sale of property and equipment           205,000          47,000
                                                        ---------       ---------

Net Cash Provided (Used) by Investing                      40,696        (142,890)

CASH FLOWS FROM FINANCING ACTIVITIES
   Net increase (repayment) of long-term
   borrowings                                            (146,323)       (174,252)
   Net proceeds (payment) of credit line                  511,817         617,101
                                                        ---------       ---------

Net Cash Provided (Used) by Financing                     365,494         442,849
                                            
Foreign currency translation                              (37,911)            708
                                                        ---------       ---------

Net Increase in Cash                                     (189,030)         53,865
Cash at beginning of year                                 358,764         109,123
                                                        ---------       ---------
Cash at end of quarter                                  $ 169,734       $ 162,988
                                                        =========       =========
Supplemental Disclosures:
   Interest paid                                        $ 165,312       $ 191,658
   Income taxes (refunded) paid, net                    $ 200,000       $ 420,000
</TABLE>


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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>
                                      3/31/97    12/31/96
                                     ----------  ----------
                    <S>              <C>         <C>

                    Raw Materials    $3,629,512  $3,213,861
                    Work in Process   1,007,920     976,993
                    Finished Goods    1,841,895   1,971,738
                                     ----------  ----------

                                     $6,479,327  $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

   Long-term debt at March 31, 1997 consisted of the following:

<TABLE>
<S>                                                                     <C>
   Trans-Industries, Inc., $3,840,000 term note, payable in             $3,580,333
   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               181,208
   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               214,284
   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 $896                      117,361
   including interest at a rate of 6%.  The note is due 
   January 21, 2002.
                                                                        ----------
                                                                         4,093,186
   Less current installments                                              (202,725)
                                                                        ----------
   Long-term debt                                                       $3,890,461
                                                                        ==========
</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 March 31, 1997  the Company was in
   compliance with all provisions.

   The Company also has a secured $6,500,000 line of credit of which
   $3,050,959 was utilized at March 31, 1997.  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.  Management
   expects to renew this credit line in the second quarter of 1997.

6. Stock Changes

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







                                       8



<PAGE>   9


                    TRANS-INDUSTRIES, INC. AND SUBSIDIARIES

Item 2.         MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL

                      CONDITION AND RESULTS OF OPERATIONS

                     For Three Months Ended March 31, 1997

Sales and Earnings

     Sales for the quarter ended March 31, 1997 were $7,989,776 compared to
$7,166,092 for the same period a year ago.  This increase of $823,684 is
primarily attributable to an increase in sales of the Company's electronic
destination signs.

     During the first quarter of 1997, the Company realized a net profit of
$621,068 on sales of $7,989,776.  For the same period of the prior year, the
Company reported net profit of $423,664 on sales of $7,166,092.  This increase
in net profit of $197,404 can be attributed to increased volume and the sale of
approximately seven acres of excess land located in Waterford, Michigan.  Net
income realized on the land sale approximated $99,000 and has been reported as
"other income."  Net profit per share for the first quarter was $.20 and $.14
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 3,073,250 and 3,074,500, respectively.

Inventories

     Inventory valuation is based upon the lower of cost or market.  At March
31, 1997, consolidated inventories were $6,479,327 compared to $5,935,617 a
year ago.  This increase of $543,710 is to accommodate the growth in sales
volume.

Interest

     Interest expense amounted to approximately $176,000 and $217,000 for the
first quarter of 1997 and 1996, respectively.  This decrease of $41,000 was the
result of average debt levels being less during the first 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 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: May 8, 1997                       /s/     Kai Kosanke
     ------------------------           ---------------------------
                                        Kai Kosanke, Treasurer
                                        and Chief Financial Officer



Date: May 8, 1997                       /s/     Paul Clemo
     ------------------------           ---------------------------
                                        Paul Clemo
                                        Assistant Treasurer



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