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GATX Corporation (NYSE:GMT) today reported 2013 second quarter net income of $35.1 million or $.74 per diluted share, compared to net income of $23.5 million or $.49 per diluted share in the second quarter of 2012. The 2013 second quarter results include a benefit from Tax Adjustments and Other Items of $3.0 million or $.06 per diluted share while the 2012 second quarter results include the negative impact from Tax Adjustments and Other Items of $15.3 million or $.31 per diluted share.
Net income for the first six months of 2013 was $62.2 million or $1.31 per diluted share, compared to $53.8 million or $1.13 per diluted share in the prior year period. The 2013 year-to-date results include the benefit from Tax Adjustments and Other Items of $1.7 million or $.04 per diluted share while the 2012 year-to-date results include the negative impact from Tax Adjustments and Other Items of $17.5 million or $.36 per diluted share. 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, “The demand for tank cars in North America continues at record levels, and we are capitalizing on this by increasing lease rates and lengthening lease terms. At the same time, we are keeping terms shorter for certain freight car types such as coal, where demand is weaker. This strategy resulted in an average renewal term of 58 months for cars in the LPI during the quarter, a shorter term than we have reported over the past year. During the quarter, the renewal rate change of GATX's Lease Price Index (“LPI”) was a positive 36.0%, the highest quarterly result since we began calculating this statistic in 2005. Rail North America's utilization remained strong at 98.2% at the end of the second quarter.