COMMENTS ON RESULTS
Finance | Tax Queries
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Income before tax and abnormal items for the six
months ended 31 December 2000 was R265 million (1999: loss R395
million) and undiluted headline earnings per share were 116,3 cents
(1999: 15,2 cents). The period under review was characterised by
a sharp decline in the value of the rand against the US dollar and
an excellent performance by Textainer. The weaker rand resulted
in a net increase in income before tax of R262 million: a foreign
exchange revaluation gain of R358 million, less an adjustment of
R96 million arising from the translation of the existing dollar-based
provision against the net long-term receivables.
Textainer contributed R65 million to headline earnings.
The financial statements R65 million to headline earnings.
The financial statements are based on an exchange
rate of US$1=R7,56 at
31 December 2000; the rate at 30 June 2000 was R6,78.
Textainer's fleet utilisation peaked at 85% towards
the end of September 2000 but has been declining since November,
partly due to the economic slowdown in the USA. It ended the year
at 82%, the same as 1999, and is currently just below 80%. By the
end of 2000, Textainer had become the world's largest lessor of
standard dry freight containers, with a fleet of 925 000 TEUs (twenty
foot equivalent units) under management.
The stakbed container factory at Montague Gardens
was closed at the end of December. All costs associated with the
closure, amounting to just under R7 million, have been included
in "Discontinuing" operations in the attached financial
reports. Production of stainless steel tank containers at the Parow
plant continues, albeit on a reduced scale, and remains under constant
Our other operations experienced very difficult
trading conditions during the period under review.
There are no significant seasonal trading patterns
in our businesses.
Textainer has entered into a joint venture with
an overseas financial institution with the formation of a new financing
entity, Textainer Marine Containers Limited ("TMCL"),
in which Textainer and the institution each hold a 49,9% interest.
TMCL is a vehicle for purchasing new containers that will be managed
by Textainer. The debt in TMCL, which is provided by overseas financial
institutions, is without recourse to Textainer. The results of TMCL
have been accounted for by Trencor on the proportionate consolidation
method, on a line-by-line basis.
Virtually all of the capital expenditure in this
period was incurred in TMCL by Textainer.
The ratio of Trencor's consolidated interest-bearing
debt to the sum of total shareholders' funds and convertible debentures
decreased from 165% at
30 June 2000 to 141% by the end of December.