GATX Corporation (NYSE:GMT) today reported 2013 third quarter net income of $53.8 million or $1.15 per diluted share, compared to net income of $53.8 million or $1.13 per diluted share in the third quarter of 2012. The 2013 and 2012 third quarter results include benefits from Tax Adjustments and Other Items of $2.8 million or $.06 per diluted share and $18.2 million or $.38 per diluted share, respectively.
Net income for the first nine months of 2013 was $116.0 million or $2.45 per diluted share, compared to $107.6 million or $2.26 per diluted share in the prior year period. The 2013 and 2012 year-to-date results include benefits from Tax Adjustments and Other Items of $4.5 million or $.09 per diluted share and $0.7 million or $.02 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, “The demand for tank cars in North America remains strong. During the third quarter, the renewal rate change of GATX’s Lease Price Index (“LPI”) was a positive 34.3% and the average renewal term for cars in the LPI was 63 months. Freight car markets are uneven, although demand for grain and coal cars improved modestly from very low levels.
“Within Rail International, we sold our 37.5% interest in AAE Cargo AG during the quarter. GATX Rail Europe (“GRE”), our wholly-owned tank car leasing business, is now better positioned to pursue opportunities in the European freight car market. GRE continues to have solid performance as we are investing in new tank cars and aggressively scrapping older equipment. Fleet utilization was 96.3% at the end of the third quarter.”Mr. Kenney continued, “American Steamship Company (“ASC”) operated thirteen vessels during the quarter, as weather conditions were favorable and water levels normalized. Customer demand remains in line with expectations. Within the Portfolio Management segment, the Rolls-Royce and Partners Finance joint ventures continue to have strong operating results.”