Triton International reported Q2/17 earnings of $45.7 million were up 32.1% from $34.6 million in Q1/17. Triton, which was formed by the merger of Triton Container and TAL International, said stronger than expected global containerized trade growth this year has boosted revenue and that trend is expected to continue during the third quarter.
Total Q2/17 leasing revenue of $281.9 million was up 6.1% from $265.6 million in Q1/17. Second quarter gain of on sale of leasing equipment of $9.6 million was up 84.6% from $5.2 million in Q1/17.
Brian Sondey, CEO of Triton, said, “Market conditions remained strong in the second quarter and we continued to benefit from our industry-leading scale, cost structure and operational capabilities. Our customers are indicating that global containerized trade growth has been stronger than expected this year, and industry forecasters have generally increased their growth projections for 2017 into the range of 5%.”
“In addition, the inventory of new and used containers remains extremely tight, especially for dry containers. New dry container prices have been fairly stable since March in the range of $2,100 to $2,200 for a 20-foot dry container, and market leasing rates for dry containers remain above our portfolio average rates. Used dry container sale prices continued to increase in the second quarter and are now above our accounting residual values.”
Sondey said Triton’s financial and operational strength had allowed it to fill a supply gap in the market, mentioning its purchase of 1.1 million TEU of new and leaseback containers.
“Our ability to quickly and aggressively invest to meet the industry’s container needs plainly demonstrates to customers that Triton is uniquely capable of managing their most critical container requirements.”
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