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GATX Corporation (NYSE:GMT) today reported 2011 fourth quarter net income of $31.6 million or $.67 per diluted share, compared to net income of $19.5 million or $.42 per diluted share in the fourth quarter of 2010. The 2011 and 2010 fourth quarter results include the positive aggregate impact from Tax Benefits and Other Items of $1.9 million or $.05 per diluted share and $4.5 million or $.09 per diluted share, respectively.
Net income for the full-year 2011 was $110.8 million or $2.35 per diluted share, compared to net income of $80.8 million or $1.72 per diluted share in the prior year. The 2011 and 2010 results include the positive aggregate impact from Tax Benefits and Other Items of $15.8 million or $.34 per diluted share and $6.2 million or $.13 per diluted share, respectively. Details related to the Tax Benefits and Other Items are provided in the attached Supplemental Information.
Brian A. Kenney, president and chief executive officer of GATX, said, “The North American rail market recovered more quickly than we anticipated in 2011. Due to broad-based improvement in the demand for railcars, we successfully raised lease rates while maintaining high utilization throughout the year. The Lease Price Index (“LPI”) for the fourth quarter was a positive 13.2% and utilization was strong, ending the year at 98.2%.
“The favorable operating environment provided the foundation for GATX to achieve key objectives outlined at the beginning of the year. First, we increased lease rates as indicated by the LPI results. Second, we executed on our plan to sell targeted assets in an improving market, generating nearly $45 million of asset remarketing income. Finally, we took advantage of opportunities to grow the asset base. We placed the largest railcar order in GATX’s history, putting us in a unique position to serve our customers and further strengthen our competitive position. In 2011, we invested $615 million, primarily to expand our North American and European rail platforms.”