CHICAGO, IL, October 23, 2018 - GATX Corporation (NYSE:GATX) today reported 2018 third quarter net income of $47.0 million or $1.22 per diluted share, compared to net income of $49.0 million or $1.25 per diluted share in the third quarter of 2017. Year-to-date 2018 net income was $162.1 million or $4.21 per diluted share, compared to $159.9 million or $4.04 per diluted share in the prior year period.
2018 year-to-date results include a net negative impact of $5.8 million or $0.15 per diluted share, attributed to costs associated with the closure of a railcar maintenance facility in Germany in the second quarter. The 2017 year-to-date results include net after-tax gains of $1.1 million or $0.03 per diluted share, related to the exit of Portfolio Management’s marine investments and other items. Details related to Tax Adjustments and Other Items are provided in the attached Supplemental Information.
Brian A. Kenney, president and chief executive officer of GATX stated, “The operating environment for Rail North America continued to improve in the third quarter, as railroad car loadings increased and railroad velocity decreased relative to 2017. Despite absolute lease rates increasing across our fleet, revenue pressure continues as the renewal lease rate change for GATX’s Lease Price Index was a negative 11.5% for the quarter. Fleet utilization increased to 99.2% and our renewal success rate was 82.9% during the quarter. The improving operating environment is resulting in substantially lower railcar maintenance expense in 2018 than we anticipated, especially for tank qualifications. This is expected to result in higher maintenance expense in 2019 as this mandatory work is completed.”
“Rail International is performing well. Utilization at GATX Rail Europe increased to 98.4%, as we continue to see gradual improvement across the markets we serve. Rolls-Royce and Partners Finance affiliates’ performance was solid as the demand for aircraft spare engines remains strong. At American Steamship Company, 10 vessels are sailing under favorable operating conditions on the Great Lakes.”
Mr. Kenney concluded, “Based on year-to-date performance and our outlook for the remainder of the year, we continue to expect our 2018 full-year earnings to be in the range of $4.90 to $5.10 per diluted share. This guidance excludes any impact from Tax Adjustments and Other Items.”
RAIL NORTH AMERICA
Rail North America reported segment profit of $68.2 million in the third quarter of 2018, compared to $70.2 million in the third quarter of 2017. Lower segment profit was a result of lower revenues partially offset by lower maintenance expense. Year to date, Rail North America reported segment profit of $241.3 million, compared to
The following information was filed by Gatx Corp (GATX) on Tuesday, October 23, 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-Q Quarterly 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-Q Quarterly Report Accession Number: 0000040211-18-000083 Submitted to the SEC: Fri Oct 26 2018 6:38:28 AM EST Accepted by the SEC: Fri Oct 26 2018 Period: Sunday, September 30, 2018 Industry: Transportation Services
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