Connecticut-based XTRA Corp., the parent company of trailer lessor XTRA Lease, said its second quarter 2001 net income slipped to $8 million, down from $13 million for the same quarter a year ago.
XTRA also announced today that its board of directors approved a new $100 million stock repurchase authorization, part of a stock-repurchase program started in February 1995 that has resulted in the acquisition of 6.9-million shares for $300 million so far – 41% of its common shares then outstanding.
XTRA’s North American and international utilization rates for its second quarter 2001 both averaged 77% versus 82% a year ago. Lewis Rubin, XTRA’s president & CEO said the slowing economy is producing significant reductions in worldwide freight tonnage. As a result, XTRA’s utilization rates remain below last year’s levels, he said.
Despite lower anticipated utilization levels, XTRA expects fiscal 2001 cash flow to remain strong, and exceed $280 million. Cash flow from operations in the first six months of fiscal 2001 was $153 million compared to $160 million in the comparable period the year before.