Textainer benefits from container shortage
During the recession, very few new dry freight containers were produced. Combined with the retirement of old containers, once demand picked up again in 2010, there was no supply.
TEXTAINER, the world's largest container lessor, has been cashing in on a worldwide container shortage.
During the recession, very few new dry freight containers were produced. Combined with the retirement of old containers, once demand picked up again in 2010, there was no supply. The world container fleet actually declined four per cent in 2009.
Even after production resumed on new containers, it has taken some time to get back to full throttle. Demand for containers also continued to grow. Cargo volumes are expected to climb 10 per cent to 11 per cent in 2010 compared to 2009.
Analysts say Textainer's leasing division should benefit going forward as many shippers will not be buying new containers, but will turn to leasing.
On November 4, Textainer reported third quarter results, showing earnings per share were 67 US cents, up from just 29 cents in the year previous quarter.
Revenue grew US$19.2 million to $75.3 million. Average fleet utilisation rose to 98 per cent in the quarter from 85.4 per cent year previous.
Textainer purchased 212,620 TEU of new containers through the third quarter for delivery through December 2010.
Textainer raised its dividend for the third consecutive quarter to 27 cents per share, up eight per cent. Its shares are now yielding a juicy 3.7 per cent.