29 Juli 2013

[290713.EN.LOG] TAL Quarterly Profit Up 29pc To US$37.9 Million On 15pc More Sales

CONTAINER lessor TAL International posted a 29.4 per cent year-on-year second quarter profit increase to US$37.9 million drawn on revenues of $172 million, up 15 per cent.

Profits were the result of "very high utilisation" at an average of 97.5 per cent during the second quarter, and to retain 97.4 per cent in July.

Due to the relatively well-balanced supply and demand of containers, further buys are "tightly connected to the growth in global containerised trade" with some shipping lines rushing to buy boxes at reduced prices, said the company.

But CEO Brian Sondey forecast that the share of new container procurement will fall to 50 per cent in 2013 from a estimated 65 per cent in 2012.

Container sale prices will continue to moderate and cause its disposal gains to trend down to historically normal levels, said a company statement.

"New investment opportunities have been more limited in this environment, and market leasing rates have become more aggressive," he said of an expected delivery of more than $470 million in new and sale-leaseback containers this year.

The Purchase, New York, global container leasing company has been able to take advantage of a very low interest rate environment to refinance several debt facilities, said its president.


Source : HKSG.

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