Tank container lessors announce 2001 results

Mar 26, 2002 12:00 PM, Charles E Wilson, Editor

Despite a poor economy and the September 11 terrorist attacks in the United States in 2001, container lessors The Cronos Group and Sea Containers Ltd eked out positive earnings for the year. Both companies credited the diversity of their container fleets as a key factor enabling them to weather the global economic slowdown.

The Cronos Group reported net income of $3.2 million in 2001, compared with $5.2 million the previous year. Total revenues for 2001 were 131.7 million, down from $147.1 million in 2000.

Net earnings at Sea Containers for 2001 were $4.5 million on revenue of $1.3 billion. In comparison, the company reported net earnings of $44.9 million on revenue of $1.4 billion in 2000.

Both companies express optimism that the demand for leased containers will pick up in 2002. During 2001, The Cronos Group purchased $32.5 million in new containers, 85% of which are refrigerated containers and other specialized units. The company’s tank container fleet now stands at 2,010 units.

James B Sherwood, Sea Containers president, said that Sea Containers or GE SeaCo are expected to purchase at least $100 million in new marine containers in 2002. Tank containers are well represented in the company’s fleet of 1.1 million TEU.