GATX Corp. (GATX) Tops Q3 EPS by 28c; Sees FY17 at High-End or Above Range

GATX Corp. (NYSE: GATX) reported Q3 EPS of $1.25, $0.28 better than the analyst estimate of $0.97.

Brian A. Kenney, president and chief executive officer of GATX stated, “Challenging conditions continue in the North American railcar leasing market due to the oversupply of existing railcars and a large railcar manufacturing backlog. In the third quarter, the renewal lease rate change of GATX’s Lease Price Index was a negative 27.0%, the average renewal term was 35 months, and our renewal success rate was 74.9%. GATX’s fleet utilization decreased slightly to 98.5% in the quarter.”

“Utilization at GATX Rail Europe remains stable at 95.6%. At American Steamship Company, 12 vessels continue to sail under favorable operating conditions on the Great Lakes. The Rolls-Royce and Partners Finance affiliates are performing well as originally expected.”

Mr. Kenney concluded, “Our year-to-date fleet performance in North American Rail has exceeded our expectations due to the excellent performance of our commercial team in keeping cars on lease despite the difficult market. GATX International and American Steamship have also performed ahead of expectations due to stronger short term demand than anticipated. Therefore, we expect our 2017 full-year earnings to be at the high end or slightly above our range of $4.40 to $4.60 per diluted share. This guidance excludes any impact from Tax Adjustments and Other Items.”

For earnings history and earnings-related data on GATX Corp. (GATX) click here.

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