Trencor

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2015 News

Trading statement

TRENCOR LIMITED

Incorporated in the Republic of South Africa

Registration No 1955/002869/06

Share Code: TRE

ISIN: ZAE000007506

(“Trencor”)

 

THIRD QUARTER UPDATE

 

Holders of securities in Trencor are advised that Textainer Group Holdings Limited (NYSE: TGH), in which Trencor has a 47,8% (30 September 2014: 48,1%) beneficiary interest, has announced net profit attributable to its shareholders in US GAAP of US$85,5 million for the nine months ended 30 September 2015 compared with US$147,0 million for the same period in 2014.  Textainer’s results may be viewed on its website www.textainer.com.

Adjusted to conform with IFRS, Textainer’s net profit for the nine months ended 30 September 2015 was US$87,1 million (same period in 2014: US$128,0 million).

Trencor’s earnings for the nine months to 30 September 2015 are as follows:

 

9 months ended

30 September

Year ended

31 December

 

2015

2014

2014

 

SA cents per share

SA cents per share

SA cents per share

 

Unaudited

Unaudited

Audited

HEADLINE EARNINGS

362,1

403,7

546,6

Deduct:

     

Unrealised foreign exchange translation gains

44,2

21,2

27,2

       

ADJUSTED HEADLINE EARNINGS

317,9

382,5

519,4

SA rand to US dollar:

     

- Period-end rate of exchange

R13,87

R11,24

R11,54

- Average rate of exchange for period

R12,23

R10,68

R10,78

  COMMENTS

  • Adjusted headline earnings exclude the effect of net unrealised foreign exchange gains arising on the translation of the long-term receivables and related valuation adjustment.
  • Textainer (47,8% beneficiary interest)
    • Demand for containers this year has been much weaker than was expected;
    • New and used container prices have continued to decline resulting in lower rental rates and gains on container sales;
    • Recorded a $2,7 million container impairment, net of accrued insurance proceeds and a $1,6 million bad debt provision for the quarter due to a customer insolvency; the prior year quarter included $2,6 million of proceeds received from a settlement with a bankrupt lessee;
    • Decreased the estimated future residual value of 40 foot high cube containers, resulting in $5,8 million of additional depreciation expense for the third quarter and year to date;
    • Average fleet utilisation was 97,2% for the nine months to 30 September 2015 (same period in 2014: 95,6%). 
    • Fleet size at 30 September 2015 was 3 219 550 TEU of which the percentage of owned containers was 80%;
    • The Textainer Board of Directors has authorized a share repurchase program of up to $100 million;
    • Declared a dividend of US$0,24 per share in respect of the third quarter.

The financial information on which this trading update is based has not been reviewed or reported on by Trencor’s independent auditors.

On behalf of the Board

NI Jowell  Chairman

3 November 2015

Sponsor

Rand Merchant Bank (A division of FirstRand Bank Limited)

www.trencor.net

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About Trencor

TRENCOR LIMITED is an investment holding company listed on the JSE. Trencor benefits from operations that focus on owning, leasing, managing and trading marine cargo containers worldwide, and related finance activities. Trencor has a beneficiary interest in Textainer.

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