XTRA Corp Foresees Lower Earnings

XTRA Corp said it expects earnings per share for its fiscal third quarter ending June 30, 2001, to be from $.50 to $.55, which is below current consensus estimates and below the $1.15 earnings per share reported for the same quarter a year ago.

The trailer leasing company attributed this weaker performance to lower domestic and international utilization rates, higher repair and maintenance expenses, higher losses on international containers identified for sale, and expenditures related to its Internet business and trailer tracking initiatives.

XTRA also expects its fourth-quarter and full-fiscal-year financial performance will continue to lag behind last year, said Lewis Rubin, president and chief executive officer.

The company still expects cash flow from operations for fiscal 2001 to reach $270 million, and it will continue its stock repurchase program. As for capital expenditures, the company has slashed its spending plans, earmarking $70 million compared with $240 million in fiscal 2000.

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