General Finance Sees Loss in Quarter

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General Finance Corp. on Friday reported a loss in its second quarter in part due to slower sales and leasing of its modular buildings and storage units in the Asia-Pacific region.

The Pasadena company reported a net loss of $3.37 million (-6 cents per share), compared with net income of $1.86 million (9 cents) a year earlier. Total revenue fell 13 percent to $42.6 million, as sales revenues declined 27 percent with approximately a third of the decline due to the economic climate in the Asia-Pacific region.

The company sells and leases portable storage units, container buildings, and freight containers in the United States, Australia and New Zealand. The products typically are used to store retail and manufacturing inventory, construction materials and documents.

“We have been working hard to reduce the proportion of sales in our revenue mix, especially in our Australian and New Zealand markets, which are dealing with their first recession in 17 years coupled with a continued dramatic decline in the Australian dollar currency,” Chief Executive Ronald Valenta said in a statement. “In our markets, we continue to see a severe economic downturn coupled with a credit crunch. Our strategy continues to be focused on implementing best practices.”

Shares were down 8 cents, or 4.5 percent, to $1.7 in morning trading on the Nasdaq.

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