12.12.2007 18:17:00 CET
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PRESS RELEASE
Paris, 12 December 2007 - 6pm
Interim dividend in respect of 2007 (rise of 43%)
The Group had forecast a 40% rise in its net income in 2007 compared to 2006. In view of the good level of activity, 2007 is expected to end with earnings above expectations.
On this basis, the Management Board will propose at the beginning of 2008 to pay an interim dividend of €0.50 per share, a rise of 43% compared to the interim dividend paid in January 2007. Subject to the Management's decision, this interim dividend will be paid on 11 January 2008.
Forecast for 2008: very positive trend
Demand:
The substantial demand for shipping containers is being reinforced by the growth in global trade. This growth is expected to reach +9% in 2008, buoyed by the emerging markets.
Infrastructure requirements in Central and Eastern Europe require an increasing supply of modular buildings. The recent acquisition of a lessor and assembler of modular buildings in the Czech Republic will enable the Touax Group to expand in Eastern Europe and gain market share in 2008.
New river regulations are due to come into force on the Danube in 2008. This will result in the scrapping of many river barges operated by competitors of Touax and will reduce the supply of transportation. Consequently, freight charges are expected to rise in the next few years. Touax, with its equipment already complying with the new regulations and with orders currently being delivered, will benefit from this rise from 2008.
The liberalization of rail freight and the need to renew the European railcar fleet is resulting in increased use of lessors. To meet this strong demand, the Group has ordered around 2,000 railcars for 2008, the majority of which have already been leased.
The US economy: the Group generates less than 5% of its revenues in the United States. The weakness of US demand will only have a very limited impact on the Group's accounts in 2008.
The US dollar: the shipping container leasing industry operates in US dollars, which represent an important part of the Group's activity. The weakness of the dollar has no effect on the Group's margin rate but does have a currency translation impact. To limit this impact, the Group has hedged its 2008 budget with a currency option.
Financing: the Group has signed purchase agreements with investors in equipment amounting to €85 million in November and December 2007 and Touax's partner banks have already undertaken to finance €70 million of equipment. These commitments already cover 75% of the Group's minimum investment targets for 2008.
In view of all these favorable factors, the Touax Group confirms a very positive rising trend in its earnings for 2008. The Group will announce more precise targets for 2008 when it announces its 2007 results, on 24 March 2008.
The TOUAX Group provides operational leasing of shipping containers, modular buildings, river barges and freight railcars for a global customer base, both for its own account and on behalf of investors.
TOUAX is listed in Paris on NYSE EURONEXT - Eurolist Compartment C (ISIN code FR0000033003).
Contacts:
TOUAX Fabrice & Raphaël WALEWSKI Managers touax@touax.com www.touax.com Tel: 01 46 96 18 00
ACTUS FINANCE Sébastien BERRET sberret@actus.fr www.actus.fr Tel: 01 53 67 35 77