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Trencor share earnings take a dip

Aug 18 2010 12:18 I-Net Bridge

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Johannesburg - JSE-listed Trencor [JSE:TRE], the container group, said on Wednesday its adjusted headline earnings per share declined to 107.5 cents for the interim period to June, compared with 113.1 cents in a similar period in 2009.
   
But headline earnings per share, which included the effect of realised and unrealised foreign exchange translation gains and losses and, in 2009 only, gains realised by Textainer on the early extinguishment of debt, increased to 121.1 cents from 68.8 cents.
   
Trencor declared an interim dividend of 40 cents per share com pared with 35 cents in 2009.
   
The company said net exchange gains, realised and unrealised, arising on translation into rand of the net dollar receivables and the related valuation adjustment amounted to R36m over the period under review from a loss of R235m.
   
This non-cash adjustment had the effect of increasing earnings per share by 13.6 cents following a 90.2 cents per share decrease in 2009.
   
Trading profit, which is earned in US dollars, after net finance costs increased by 12% to $55.8m during the period.
   
However, translated at the much stronger average exchange rate that prevailed in the current period, this declined in rand terms by 7% to R419m from R451m.
   
Trencor owns 61.9% interest in Textainer, the US-based container company.
   
For six months to June, Textainer reported net profit of $49.3m from $51.9m including $15m realised on the early extinguishment of debt.
   
Adjusted to conform with International Financial Reporting Standards, net profit declined to $45.2 million from $53.0 million, including $15m realised on the early extinguishment of debt.
   
Fleet utilisation stands at a record high of 98.6%, compared with spot utilisation of 85.4% at 30 June 2009 and 88.6% at end December 2009.


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