CAI International reported its profit in the second quarter of 2013 was $16.9 million, increasing 12 percent from $15.1 million in the second quarter of 2012.
Total revenue for the intermodal freight container lessor in the second quarter was a record $53.0 million, jumping 33 percent from $38.7 million in the same quarter in the previous year. Quarterly container rental revenue was $48.4 million, rising 38 percent compared with the second quarter of 2012 and 4 percent versus the first quarter of 2013, making it the 13th consecutive quarter of record rental revenue. The increase in container rental revenue was primarily driven by an increase in the average number of 20-foot-equivalent units of owned containers on lease, according to CAI.
During the quarter, CAI entered into two sale-leaseback transactions with shipping customers for a total of about 32,000 TEUs of containers. The company also acquired about 27,000 TEUs of new containers during the quarter.
“Our results this quarter are consistent with our outlook in the first quarter conference call, when we had indicated delayed inquiries for new containers from shipping lines,” said Victor Garcia, CAI’s CEO, in a written statement. “However, as the second quarter progressed, customer inquiries increased and we experienced an increase in the lease-out of new equipment.”
“Nonetheless, overall trade growth has not reached expected levels and consequently demand for new equipment has been weaker than we expected, resulting in a competitive rate environment,” Garcia continued. “We continue to believe that the underlying fundamentals for our sector remain positive — high utilization, balanced supply/demand and tight credit markets for shipping companies — and that any uptick in overall economic activity, will result in an acceleration in the demand for new containers.”