Buffett’s company buys Xtra Corp.

Aug. 1, 2001
Investment guru Warren Buffett has entered the container leasing business. Buffett’s company, Berkshire Hathaway Inc, has agreed to buy Westport, CT-based Xtra Corp. for about $1.3 billion in cash and assumed debt – with the hope shipping demand will rebound with the economy. Xtra Corp. will become a wholly-owned subsidiary of Buffett’s Omaha-based investment company, which is offering $55 per share
Investment guru Warren Buffett has entered the container leasing business. Buffett’s company, Berkshire Hathaway Inc, has agreed to buy Westport, CT-based Xtra Corp. for about $1.3 billion in cash and assumed debt – with the hope shipping demand will rebound with the economy.

Xtra Corp. will become a wholly-owned subsidiary of Buffett’s Omaha-based investment company, which is offering $55 per share to holders of Xtra common stock. The company, which leases over-the-road trailers and intermodal equipment, will remain headquartered in Connecticut.

“Xtra is an outstanding business with a wonderful reputation,” said Buffett. “It will be a great addition to the Berkshire Hathaway group of businesses.”

Buffett's investment comes as shipping companies that lease Xtra's equipment struggle in the sluggish U.S. economy. Xtra today said fiscal third-quarter earnings fell 57% because of lower freight demand and increased costs. In the past 12 months, Berkshire shares gained 23% while the Standard & Poor's 500 Index slid 15%.

Xtra 's fleet of about 260,000 units includes approximately 90,000 over-the-road trailers. The company said its utilization rate for equipment in April, May and June fell to 76% from 83% a year earlier as international and domestic shipments by customers declined.

About the Author

Tim Parry

Tim Parry is a former FleetOwner editor. 

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!

Sponsored Recommendations

Boost truck leasing profits with telematics insights! Reduce maintenance costs, improve uptime, and strengthen customer relationships. Learn how data drives success.
This free guide outlines simple steps for hiring and onboarding commercial drivers while ensuring that you meet Regulation Part 391 and maintain fully compliant driver qualification...
Ready to boost fleet efficiency by up to 50%? Learn how AI-powered dispatch and next-gen tech are transforming TMS workflows, improving driver planning, and streamlining operations...
Gain a strategic edge in today’s evolving fleet landscape. Join us to explore how fuel cards are helping fleet managers cut costs, enhance control, and prepare for an electrified...