[EN-SEA] "Textainer" Quarterly Profit Increase 29pc to US$25 Million

TEXTAINER Group Holdings Limited, a global lessor of intermodal containers, has posted a net profit of US$25.5 million for the first quarter ending March 31, an increase of $5.7 million, or 29 per cent year on year.

Revenue stood at $69.2 million, up $9.6 million, or 16 per cent, year on year. EBITDA for the quarter rose by eight per cent, or $3.5 million, to $45.7 million.

The positive results come as the group's fleet utilisation averaged 90.1 per cent for the first quarter and currently stands at 94.9 per cent, which is an improvement of 6.1 per cent year on year, the company said in a statement.

Textainer said it has ordered more than 70,000 TEU of new containers for delivery in the first half of 2010, representing more than $150 million of capital expenditures.

"Textainer posted solid results in the first quarter of 2010. Importantly, with more than 70 per cent of the company's fleet committed to long-term leases, we were able to achieve an average utilisation rate of 90.1 per cent for the three months ended March 31, 2010," said president and CEO John Maccarone.

"Throughout the 2009 global economic recession we increased our refrigerated container business, purchased containers for trading, and entered into purchase-leaseback transactions with shipping lines."

Looking ahead, Textainer said: "While container manufacturers have resumed production following the most challenging year in the history of containerised shipping, they are still experiencing difficulties in restoring capacity after losing a majority of their skilled labourers during the long shutdown that began at the end of 2008.

"As a result, we estimate that total new production orders through April delivery were only about 370,000 TEU, of which lessors accounted for 65 per cent.

As production levels are expected to remain low, combined with the anticipated retirement of older containers, we believe there is now a shortage of containers."

The Textainer group has a total of 1.5 million containers - or 2.2 million TEU, in its owned and managed fleet. The company leases containers to more than 400 shipping lines and other lessees.

It also claims to have been "one of the largest purchasers of new containers among container lessors over the last 10 years." Textainer said it sold more than 100,000 containers last year to more than 1,000 customers.

Source : HKSG, 10.05.10.