Textainer suffers loss in first quarter as Covid-19 hits trade
The shipping group has reported that demand for containers fell during its quarter to end-March
Textainer Group, which leases shipping containers swung, into a loss in its first quarter to end-March, as global trade was hit by the Covid-19 outbreak.
The group reported a net loss of $4.4m (R81.2m) from profit of $28.78m previously, with the group reporting declining rental income and losses related to its long-term hedging against interest-rate volatility, as global central banks cut interest rates in response to the pandemic.
“The market remains challenged by the extraordinary effects and implications of the broad-based response to the current pandemic, and there is a high level of uncertainty to our outlook for the rest of the year,” said CEO Olivier Ghesquiere.
“However, Textainer is well-positioned to navigate through the current crisis and participate in an eventual market recovery with a strong balance sheet, healthy liquidity, an optimiSed capital structure as well as demonstrated expense control and efficiency,” Ghesquiere said.
Textainer has a market capitalisation of R8.5bn and its share has risen 11.41% so far in 2020.