TransContainer’s (TRC) H116 results showed the company is benefiting from improving market conditions bolstered by active cost management. Russian rail-freight volumes increased by 6.1% in H116; Q2 volumes in particular accelerated significantly. This rebound, in contrast to a sluggish overall economic performance in Russia, was driven by increasing levels of ‘containerisation’ in the country and gives us confidence in our FY16 earnings forecasts for TRC. The 360bp improvement in EBITDA margins versus H115 is a further reason to be positive as evidence mounts that TRC is moving well beyond its FY15 earnings trough.

08 Sep 2016
Q2 volume recovery boosts earnings story
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Jamie Aitkenhead
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6 pages
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Q2 volume recovery boosts earnings story
- Published:
08 Sep 2016 -
Author:
Jamie Aitkenhead -
Pages:
6 -
TransContainer’s (TRC) H116 results showed the company is benefiting from improving market conditions bolstered by active cost management. Russian rail-freight volumes increased by 6.1% in H116; Q2 volumes in particular accelerated significantly. This rebound, in contrast to a sluggish overall economic performance in Russia, was driven by increasing levels of ‘containerisation’ in the country and gives us confidence in our FY16 earnings forecasts for TRC. The 360bp improvement in EBITDA margins versus H115 is a further reason to be positive as evidence mounts that TRC is moving well beyond its FY15 earnings trough.