GATX CORPORATION REPORTS 2017 FOURTH-QUARTER AND FULL-YEAR RESULTS
CHICAGO, January 18, 2018 - GATX Corporation (NYSE:GATX) today reported 2017 fourth quarter net income of $342.1 million or $8.83 per diluted share, compared to net income of $30.9 million or $0.77 per diluted share in the fourth quarter of 2016. The fourth-quarter 2017 and 2016 results include impacts from Tax Adjustments and Other Items; 2017 includes a net positive impact of $8.15 per diluted share, and 2016 includes a net negative impact of $0.37 per diluted share.
Net income for the full-year 2017 was $502.0 million or $12.75 per diluted share, compared to $257.1 million or $6.29 per diluted share in the prior year. The 2017 and 2016 full-year results include net benefits from Tax Adjustments and Other Items of $8.05 per diluted share and $0.52 per diluted share, respectively.
Details related to Tax Adjustments and Other Items are provided in the attached Supplemental Information. The 2017 fourth quarter and full year Tax Adjustments and Other Items each include an estimated one-time, non-cash net benefit associated with the recently enacted Tax Cuts and Jobs Act. The most significant component of this net benefit is a reduction in our net deferred tax liability resulting from a lower future U.S. corporate tax rate.
Brian A. Kenney, president and chief executive officer of GATX stated, “We outperformed our original expectations in 2017. Continued industry-wide railcar overcapacity negatively impacted lease renewal pricing at Rail North America, however outstanding performance by our commercial team enabled us to maintain higher than expected fleet utilization throughout the year. We also capitalized on continued strong North American secondary market demand by optimizing the fleet through railcar sales, generating significant remarketing income. Rail International maintained higher average fleet utilization than expected during the year, while American Steamship earned significantly higher segment profit in 2017 by carrying more tonnage and operating their fleet more efficiently. Lastly, within Portfolio Management, our Rolls-Royce Partners Finance affiliates produced another year of higher than expected financial results.
Mr. Kenney added, “We anticipate railcar overcapacity to continue in North America in 2018. However, certain industry data points suggest that the railcar leasing market is slowly improving. For example, throughout 2017, railcar loadings generally improved; and absolute railcar lease rates increased broadly, albeit off a very low base. Despite these positive signs, we expect that absent an unforeseen demand catalyst, Rail North America will earn lower segment profit in 2018, as market lease rates are expected to remain below average expiring rates for railcars renewing during the year. Rail International is expected to show higher profitability in 2018, primarily due to a stronger Euro. ASC is expected to produce higher segment profit in 2018 due to freight rate escalation and further fleet efficiencies. We anticipate that Portfolio Management will generate lower residual sharing income in 2018, however, this should be partially offset by another strong year at our Rolls-Royce Partners Finance affiliates.
The following information was filed by Gatx Corp (GATX) on Thursday, January 18, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: GATX CIK: 40211 Form Type:10-K Annual Report Accession Number: 0000040211-18-000023 Submitted to the SEC: Wed Feb 21 2018 4:51:46 PM EST Accepted by the SEC: Wed Feb 21 2018 Period: Sunday, December 31, 2017 Industry: Transportation Services