Textainer touts resiliency in a ‘lackluster market environment’

The container lessor Textainer Group Holdings Ltd. (NYSE:TGH) reported net income of $10.6 million in the quarter ending Sept. 30 compared to $1.9 million in the same 2018 period.

Lease rental income for owned and managed containers was $154.7 million in the third quarter this year, down from $157.8 million in the third quarter of 2018.

“Textainer’s performance was resilient in a generally lackluster market environment,” said Olivier Ghesquiere, president and chief executive officer. “Market activity remained slow in the third quarter, as the traditional peak season did not materialize given the ongoing trade tensions and slower economic growth. As such, we have limited our incremental container investment to $67 million delivered during the third quarter and remain focused on a disciplined profit improvement strategy targeting specific yield and return thresholds.

“While the overall market activity remains muted and is reflected in our operating results, we have taken a number of actions this year to enhance shareholder value. We have improved our capital structure through our previously announced new debt offering and facility refinancing, which leaves us strongly positioned to participate in any future rebound in market demand. We repurchased approximately 240,000 shares of our common stock during the third quarter under our $25 million share repurchase program, which commenced in September 2019,” he added.

Ghesquiere added that Textainer is investing in technology and personnel while implementing initiatives to lower operating expenses.Textainer has announced plans to dual list its shares on the Johannesburg Stock Exchange “to enable Trencor to distribute its Textainer shares to its shareholders, which we believe will lead to a broader and deeper shareholder base over the longer term.” A March 25 20-F filing with the U.S. Securities and Exchange Commission said Trencor Limited owned approximately 47.5% of Textainer’s issued and outstanding common shares.