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GATX Corporation (NYSE:GMT) today reported 2012 first quarter net income of $30.3 million or $.64 per diluted share, compared to net income of $19.9 million or $.42 per diluted share in the first quarter of 2011. The 2012 and 2011 first quarter results include the aggregate impact from Tax Benefits and Other Items of negative $2.2 million or $.05 per diluted share and positive $6.4 million or $.14 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, “Demand for most railcar types in our fleet continues to be strong. GATX’s North American fleet utilization improved to 98.5% at the end of the first quarter. The commercial team remains focused on improving lease rates while also increasing lease terms on many car types. GATX’s Lease Price Index (“LPI”) was a positive 19.2% with an average renewal term of 55 months, and the renewal success rate was over 80%.”
Mr. Kenney added, “We continue to take delivery of new railcars under our five-year supply agreement, and we are placing these cars on long-term leases at very attractive rates. We are also taking delivery of new tank cars in Europe and achieving favorable lease terms.
“American Steamship Company’s (“ASC”) sailing season began in late March. Based on early indications from our customers, ASC expects to move modestly more tonnage in 2012 than in 2011. Results in the Portfolio Management segment were solid as we executed on planned asset remarketing activity during the quarter.”
Mr. Kenney concluded, “Our 2012 full-year earnings estimate remains unchanged at $2.40 - $2.60 per diluted share, excluding the impact of Tax Benefits and Other Items.”
Rail segment profit was $58.6 million in the first quarter of 2012, compared to $51.6 million in the first quarter of 2011. The 2012 and 2011 first quarter results include the pre-tax impact from Other Items of negative $2.5 million and positive $7.2 million, respectively. The improvement in segment profit was driven by increasing lease rates and lower maintenance expense due to the high renewal success rate in North America.