GATX Corp. (GMT) Tops Q1 EPS by 6c

GATX Corp. (NYSE: GMT) reported Q1 EPS of $0.82, $0.06 better than the analyst estimate of $0.76. Revenue for the quarter came in at $286.6 million versus the consensus estimate of $294.3 million.

GATX Corp. sees FY2014 EPS of $4.15-$4.35, versus the consensus of $4.00.

Brian A. Kenney, president and chief executive officer of GATX, said, “Rail North America’s fleet utilization was 98.5% at the end of the first quarter and our renewal success rate during the quarter was more than 85%. The renewal rate change of our Lease Price Index was a positive 33.9% and the average renewal term for cars in the LPI was 62 months. These favorable results were driven by continued strong demand for tank cars and improving demand for certain freight car types, such as covered hoppers. With the acquisition of the per diem boxcar fleet, GATX is now the largest lessor of boxcars in North America and we are well-positioned to capitalize on the unique trends in this market. Uncertainty related to future regulations governing tank cars which carry flammable liquids intensified during the quarter as shippers, car owners, railroads and legislators all advocated varying positions to regulators about what should be included in the final rules. It is not possible to estimate the extent of any changes to tank car regulations, or what impact they might have on GATX."

Mr. Kenney continued, “Rail International’s performance remains stable as we continue to add newly built cars to our European tank car fleet. American Steamship Company’s 2014 sailing season is off to a slow start due to ice conditions on the Great Lakes. As the sailing season progresses, we expect to benefit from solid demand and higher water levels. Within the Portfolio Management segment, the Rolls-Royce and Partners Finance affiliates performed very well, while the ocean-going marine vessels continue to experience soft demand and relatively low rates.

“We expect our 2014 full-year earnings to be in the range of $4.15 to $4.35 per diluted share. The increase in our estimate from the range we provided in January is due to the full-year impact of the change in the depreciable lives as noted above. Consistent with prior guidance, we have not incorporated any costs from changes to tank car regulations into our earnings estimate.”

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

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