GATX Corporation (NYSE:GMT) today reported 2012 second quarter net income of $23.5 million or $.49 per diluted share, compared to net income of $26.4 million or $.56 per diluted share in the second quarter of 2011. The 2012 and 2011 second quarter results include the aggregate impact from Tax Adjustments and Other Items of negative $15.3 million or $.31 per diluted share and positive $6.2 million or $.13 per diluted share, respectively.
Net income for the first six months of 2012 was $53.8 million or $1.13 per diluted share, compared to $46.3 million or $.98 per diluted share in the prior year period. The 2012 and 2011 year-to-date results include the impact from Tax Adjustments and Other Items of negative $17.5 million or $.36 per diluted share and positive $12.6 million or $.27 per diluted share, respectively. Details related to the Tax Adjustments and Other Items are provided in the attached Supplemental Information.
Brian A. Kenney, president and chief executive officer of GATX, said, “We are seeing continued strong demand for most railcar types in our fleet. During the second quarter, GATX’s Lease Price Index (“LPI”) was a positive 23.9% and the average renewal term for cars in the LPI was 59 months. These results were achieved while maintaining over 98% utilization of the North American railcar fleet.
“There is also healthy demand for new railcars delivering under our five-year supply agreement. Railcars scheduled to deliver through the end of 2013 have already been allocated to customers on long-term leases at very attractive rates.”
Mr. Kenney continued, “In Europe, we are placing new tank car deliveries at favorable rates and demand for existing tank cars remains solid. Also, during the quarter we announced our entry into the Indian railcar leasing market with the purchase of railcars that will begin to deliver in August.