CAI International reported its net income in the third quarter of 2013 was $15.3 million, falling 9 percent year-over-year from $16.8 million.
“Our net income this quarter was negatively affected by higher storage costs and lower gains on sale of equipment,” siad Victor Garcia, CEO of CAI, in a written statement.
However, total quarterly revenue for the intermodal freight container lessor was a record $53.9 million, compared with $44.9 million in the third quarter of 2012, representing an increase of 20 percent. Container rental revenue in the third quarter was $50.7 million, up from $40.5 million, driven by an increase in the average number of 20-foot-equivalent units of owned containers on lease, according to CAI.
“We are pleased that we have continued to gain support from our customers by leasing more containers this quarter, however, we did not experience the peak season demand normally expected during the third quarter,” Garcia noted. “However, since the end of the quarter, we have witnessed more requests for equipment, which we view as a positive development of improved container demand. We also remain optimistic about the demand for equipment in 2014 since many recent economic forecasts predict an improving outlook for most of the global economy.”
“With even modest growth in world trade, we would expect demand for containers to significantly improve from what we are seeing so far this year,” he concluded.