“Our performance so far in 2012 continues to be supported by attractive market fundamentals. The supply / demand balance for containers remained tight through the winter slow season, and our utilization stood at 97.7% as of April 26, 2012. Trade growth is expected to remain solidly positive this year, most of our customers continue to be reluctant to purchase new containers directly, new container purchase prices have been increasing steadily from the beginning of the year as seasonal demand has increased, and used container sale prices remain high – moderating from peak levels reached last year more slowly than we had expected.”
Mr. Sondey continued, “Looking forward, we expect the current strong market conditions to continue throughout the year, and we expect TAL’s operating performance to remain near peak levels. Leasing revenue will get a boost in the second quarter as new containers start to go on-hire in large numbers, and we also now expect used container sale prices to remain firm through the summer peak season for dry containers. Based on this, we expect our adjusted pretax income to increase from the first quarter to the second quarter of 2012, and we expect our profitability to remain strong throughout 2012.”
“While trade growth is expected to be positive this year, and while the freight rates for our customers have increased substantially over the last few months, we continue to believe that the main risks to our positive expectations for this year include a renewed severe global recession and the potential for a major customer default. We don’t currently consider either of these events likely, but we are wary of a variety of potential event risks for 2012 due to the current high level of uncertainty in the global economy and the significant financial pressures facing our customers.”Dividend TAL’s Board of Directors has approved and declared a $0.58 per share quarterly cash dividend on its issued and outstanding common stock, payable on June 22, 2012 to shareholders of record at the close of business on June 1, 2012.