31.08.2007 18:00:00 CET
* { font-family: Arial, Verdana, Helvetica; font-size: 13px;} td { padding: 3px; } }
The Group has reaffirmed its growth strategy by completing investments worth over €90 million in the first half of 2007, both for its own account and on behalf of third parties. This development is based on the purchasing and leasing of new equipment in its four business segments and is underpinned by structural market growth. The new investments allow a significant improvement in the Group's operating margin.
To support its significant growth, the Group completed a number of projects in the first half of 2007. After achieving a 76% increase in earnings in 2006, Touax successfully completed an issue of bonds with redeemable stock warrants for an amount of €40.4 million in March 2007. In April 2007, on its one hundredth anniversary as a listed company, Touax announced a very favorable outlook for full-year 2007, which will be confirmed when the first-half 2007 results are announced. In May 2007, the Group presented its reorganization plan, which is intended to optimize the operation and financing of each division in order to provide more effective support for growth. Finally, in June 2007, Touax strengthened its position in Europe by acquiring Warex Raumsysteme GmbH, a modular building leasing company in Germany.
The Group is therefore continuing its profitable growth in 2007 in the operational leasing of shipping containers, modular buildings, river barges and freight railcars, supported by a structural trend towards outsourcing among its customers.
The Shipping Containers division is being driven by the globalization of trade. The Group's fleet amounted to 400,000 TEU (twenty-foot equivalent container units) at the end of June 2007. This increase was accompanied by the signing of operational leasing contracts with the main global shipping lines in the first half of 2007.
The Modular Buildings division is being sustained by the need for flexibility among its customers. Since the beginning of 2007, the Group has signed significant contracts with large industrial groups, local authorities and major players in the construction industry.
The River Barges division is benefiting from the ageing of fleets in the European market. To meet the demand for modernization, the TOUAX Group has placed orders for 22 barges in China for the Rhine and Danube basins and for 12 barges in South America for the Parana Basin (Paraguay).
The Railcars division is being buoyed by the liberalization of rail freight in Europe. In the first half of 2007, TOUAX signed a major contract for the supply of 915 railcars with Deutsche Bahn, representing an investment of €50 million. The fleet managed by Touax exceeded 4,500 railcars at the end of June 2007, with more than 3,000 railcars on order.
The Group's strategy is to expand its leasing fleets in its four business segments, thereby gaining market share and increasing its economies of scale. Touax continues to increase its investments in owned assets, generating significant recurrent income and opportunities for capital gains on disposals, which, coupled with investments managed on behalf of third parties, make it possible to increase the operating margin.
The weakness of the North American market has only a very limited effect on the Group, since it generates less than 4% of its revenues in the region. Furthermore, the current disruption in the financial markets does not affect the Group, which currently has financing available in excess of €80 million. Touax purchases and leases tangible assets which are largely unaffected by the disruption in the financial markets.
In conclusion, the investment strategy associated with the Group's commercial performance has an accretive effect on its earnings. Touax will present its first-half 2007 results on 11 September 2007.
__________________________
TOUAX is listed on Euronext Paris (Eurolist compartment C, Next Prime - TOUP.FP / ISIN FR0000033003)
Contacts:
Fabrice Walewski / Raphaël Walewski Managers touax@touax.com Tel: 01 46 96 18 00 www.touax.com
Sébastien Berret sberret@actus.fr Tel: 01 53 67 36 52