Textainer reports fleet utilization tops 98%

Textainer reports fleet utilization tops 98%    Container-leasing company Textainer said it had first quarter net profit of $42.8 million compared to $27.1 million in the same 2010 period.
   Revenue was $91.2 million for the quarter compared to $69.6 million in the same 2010 period.
   Textainer said fleet utilization increased to 98.2 percent, from 90.1 percent for the first quarter 2010.
   The company said it has ordered 166,500 TEUs of new standard dry-freight containers for delivery in the first half of 2011 compared to record purchase of 214,000 TEUs in 2010. It said 98,400 TEUs were delivered in the first quarter.
   Last year the company also ordered 6,800 TEUs of refrigerated containers. This year it has orders for 9,000 TEUs of reefers for delivery through July.
   The company said manufacturing in China, where most containers are built, resumed more slowly than expected after the Chinese New Year holiday in February.
   “We understand that some workers may have postponed returning to their jobs after the holidays so that they might seek better paying jobs or negotiate higher wages. As a result of the slower resumption of manufacturing in China, finished goods production was delayed, leading to delays in the on-hire of some of our new containers until late March and April. However, we are optimistic that demand will continue to improve going forward,” Textainer said.
   The company said it expects “utilization to remain in the mid to high 90 percent range during 2011, and have thus far been pleased as utilization averaged 98.2 percent in the first quarter of 2011. So far this year, returns of older containers by our customers have been minimal primarily due to the high cost required to buy or lease replacement containers, which has resulted in extensions of expired leases, usually at higher rental rates.”