GATX Corporation Reports 2023 Fourth-Quarter and Full-Year Results

  • Full-year 2023 net income was $259.2 million or $7.12 per diluted share, including a net positive impact from Tax Adjustments and Other Items of $0.05 per diluted share
  • Full-year investment volume exceeded $1.6 billion
  • Company initiates 2024 earnings guidance of $7.30–$7.70 per diluted share

CHICAGO–(BUSINESS WIRE)–GATX Corporation (NYSE: GATX) today reported 2023 fourth-quarter net income of $66.0 million or $1.81 per diluted share, compared to net income of $48.4 million or $1.36 per diluted share in the fourth quarter of 2022. The 2023 fourth-quarter results include a net positive impact from Tax Adjustments and Other Items of $0.07 per diluted share. The 2022 fourth-quarter results include a net negative impact from Tax Adjustments and Other Items of $0.18 per diluted share.


Net income for the full-year 2023 was $259.2 million or $7.12 per diluted share, compared to $155.9 million or $4.35 per diluted share in the prior year. The 2023 full-year results include a net positive impact from Tax Adjustments and Other Items of $0.05 per diluted share. The 2022 full-year results include a net negative impact from Tax Adjustments and Other Items of $1.72 per diluted share. Details related to Tax Adjustments and Other Items are provided in the attached Supplemental Information.

GATX achieved excellent financial results in the fourth quarter, resulting in a very strong year in terms of net earnings, earnings per share and investment volume,” said Robert C. Lyons, president and chief executive officer of GATX. “The railcar leasing environment in North America remains solid. In 2023, we capitalized on the favorable market conditions by successfully increasing renewal lease rates while extending lease terms. This strategy enabled us to continue locking in high-quality, long-term committed cash flow. The renewal lease rate change of GATX’s Lease Price Index was positive 33.5% for the quarter, with an average renewal term of 65 months. Furthermore, we identified opportunities to invest in attractive markets while also optimizing our fleet by selling railcars into an active secondary market. For the full year, Rail North America’s investment volume was $977 million, while remarketing income was $112 million.

Rail International also performed well as it maintained solid fleet utilization at year end and continued to experience increases in renewal lease rates compared to expiring rates for most railcar types. Both Rail Europe and Rail India progressed against their goal of growing and diversifying their fleets. In particular, Rail India had record investment volume in 2023 and increased its fleet size by over 2,900 new railcars.

In Portfolio Management, the Rolls-Royce and Partners Finance affiliates outperformed our original expectation due to the strong recovery in global passenger air travel. Demand for engines within the RRPF portfolio was very strong, and revenues from GATX wholly owned engines exceeded our expectations for the year. Historically, global air travel has been extremely resilient through economic cycles and macro shocks, and this resiliency was proven once again as air travel continues its strong recovery from pandemic-era lows.

In 2023, we executed our strategy to invest in attractive leasing assets across our global businesses. In addition to successfully placing deliveries of new railcars under our supply agreements in North America, we identified incremental opportunities to acquire over 2,300 railcars for $324 million. In Rail International, we invested over $380 million and added a combined total of over 4,600 new railcars in Europe and India. In Portfolio Management, we increased our direct investment in aircraft spare engines by acquiring 10 engines for over $260 million. Overall, our full-year investment volume exceeded $1.6 billion.”

Mr. Lyons added, “For 2024, we expect Rail North America’s segment profit to increase, driven by higher lease revenue as we continue to add new railcars to the fleet and renew expiring leases at higher lease rates across many car types. We also anticipate higher segment profit in Rail International due to more railcars on lease at higher lease rates. In Portfolio Management, we anticipate robust demand for aircraft spare engines, which should result in another year of strong earnings from RRPF and our wholly owned engines.

Mr. Lyons concluded, “Over the past several years, GATX has made disciplined investments that position us well for the future, and we will continue to look for opportunities to invest prudently across our global businesses. We remain intensely focused on generating attractive risk-adjusted returns for our shareholders. Based on our current outlook, we expect 2024 earnings to be in the range of $7.30–$7.70 per diluted share, which would represent another strong year for GATX.”

RAIL NORTH AMERICA

Rail North America reported segment profit of $66.7 million in the fourth quarter of 2023, compared to $83.5 million in the fourth quarter of 2022. For the full year, Rail North America reported segment profit of $307.3 million in 2023, compared to $321.3 million in 2022. Lower fourth-quarter and full-year 2023 segment profit was primarily driven by higher maintenance expense due to higher repair volume and higher interest expense, partly offset by higher revenues.

As of Dec. 31, 2023, Rail North America’s wholly owned fleet was approximately 110,500 cars, including more than 9,300 boxcars. The following fleet statistics and performance discussion exclude the boxcar fleet.

Fleet utilization was 99.3% at the end of the fourth quarter, compared to 99.3% at the end of the prior quarter and 99.5% at 2022 year end. During the fourth quarter, the renewal lease rate change of the GATX Lease Price Index (LPI) was positive 33.5%. This compares to positive 33.4% in the prior quarter and positive 24.4% in the fourth quarter of 2022. The average lease renewal term for railcars included in the LPI during the fourth quarter was 65 months, compared to 65 months in the prior quarter and 52 months in the fourth quarter of 2022. The 2023 fourth-quarter renewal success rate was 87.1%, compared to 83.6% in the prior quarter and 85.7% in the fourth quarter of 2022.

Additional fleet statistics, including information on the boxcar fleet, and macroeconomic data related to Rail North America’s business are provided on the last page of this press release.

RAIL INTERNATIONAL

Rail International’s segment profit was $34.4 million in the fourth quarter of 2023, compared to $18.2 million in the fourth quarter of 2022. Full-year segment profit was $113.4 million in 2023, compared to $85.9 million in 2022. 2023 full-year results include a net positive impact of $0.3 million from Tax Adjustments and Other Items. 2022 fourth-quarter and full-year results include net negative impacts of $3.8 million and $14.6 million, respectively, from Tax Adjustments and Other Items. Results in 2023 were favorably impacted by more railcars on lease.

As of Dec. 31, 2023, GATX Rail Europe’s (GRE) fleet consisted of over 29,200 cars and utilization was 95.9%, compared to 96.0% at the end of the prior quarter and 99.3% at 2022 year end.

Additional fleet statistics for GRE and Rail India are provided on the last page of this press release.

PORTFOLIO MANAGEMENT

Portfolio Management reported segment profit of $31.3 million in the fourth quarter of 2023, compared to segment profit of $23.1 million in the fourth quarter of 2022. 2023 and 2022 fourth-quarter results include net negative impacts of $2.6 million and $2.8 million, respectively, from Tax Adjustments and Other Items. 2023 full-year segment profit was $106.4 million, compared to $14.7 million in 2022. 2023 and 2022 full-year results include net negative impacts of $4.0 million and $49.6 million, respectively, from Tax Adjustments and Other Items. Additional details are provided in the attached Supplemental Information under Impact of Tax Adjustments and Other Items.

Higher 2023 fourth-quarter and full-year segment profit was predominately driven by stronger operating performance and higher remarketing income at the Rolls-Royce and Partners Finance affiliates. Increased earnings from GATX Engine Leasing, the Company’s wholly owned engine portfolio, also contributed to higher segment profit in 2023.

COMPANY DESCRIPTION

At GATX Corporation (NYSE:GATX), we empower our customers to propel the world forward. GATX leases transportation assets including railcars, aircraft spare engines and tank containers to customers worldwide. Our mission is to provide innovative, unparalleled service that enables our customers to transport what matters safely and sustainably while championing the well-being of our employees and communities. Headquartered in Chicago, Illinois since its founding in 1898, GATX has paid a quarterly dividend, uninterrupted, since 1919.

TELECONFERENCE INFORMATION

GATX Corporation will host a teleconference to discuss 2023 fourth-quarter and full-year results. Call details are as follows:

Tuesday, Jan. 23, 2024

11 a.m. Eastern Time

Domestic Dial-In: 1-888-660-6118

International Dial-In: 1-929-203-1802

Replay: 1-800-770-2030 (Domestic) or 1-647-362-9199 (International) / Access Code: 2548217

Call-in details, a copy of this press release and real-time audio access are available at www.gatx.com. Please access the call 15 minutes prior to the start time. A replay will be available on the same site starting at 2 p.m. (Eastern Time), Jan. 23, 2024.

AVAILABILITY OF INFORMATION ON GATX’S WEBSITE

Investors and others should note that GATX routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the GATX Investor Relations website. While not all of the information that the Company posts to the GATX Investor Relations website is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media and others interested in GATX to review the information that it shares on www.gatx.com under the “Investor Relations” tab.

FORWARD-LOOKING STATEMENTS

Statements in this Earnings Release not based on historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and, accordingly, involve known and unknown risks and uncertainties that are difficult to predict and could cause our actual results, performance, or achievements to differ materially from those discussed. These include statements as to our future expectations, beliefs, plans, strategies, objectives, events, conditions, financial performance, prospects, or future events. In some cases, forward-looking statements can be identified by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “outlook,” “continue,” “likely,” “will,” “would”, and similar words and phrases. Forward-looking statements are necessarily based on estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Accordingly, you should not place undue reliance on forward-looking statements, which speak only as of the date they are made, and are not guarantees of future performance. We do not undertake any obligation to publicly update or revise these forward-looking statements.

The following factors, in addition to those discussed in our other filings with the SEC, including our Form 10-K for the year ended December 31, 2022, could cause actual results to differ materially from our current expectations expressed in forward-looking statements:

 

  • a significant decline in customer demand for our transportation assets or services, including as a result of:
    • prolonged inflation and high interest rates
    • weak macroeconomic conditions and world trade policies
    • weak market conditions in our customers’ businesses
    • adverse changes in the price of, or demand for, commodities
    • changes in railroad operations, efficiency, pricing and service offerings, including those related to “precision scheduled railroading” or labor strikes or shortages
    • changes in, or disruptions to, supply chains
    • availability of pipelines, trucks, and other alternative modes of transportation
    • changes in conditions affecting the aviation industry, including global conflicts, geographic exposure and customer concentrations
    • customers’ desire to buy, rather than lease, our transportation assets
    • other operational or commercial needs or decisions of our customers
  • inability to maintain our transportation assets on lease at satisfactory rates due to oversupply of assets in the market or other changes in supply and demand
  • competitive factors in our primary markets, including competitors with significantly lower costs of capital
  • higher costs associated with increased assignments of our transportation assets following non-renewal of leases, customer defaults, and compliance maintenance programs or other maintenance initiatives
  • events having an adverse impact on assets, customers, or regions where we have a concentrated investment exposure
  • financial and operational risks associated with long-term purchase commitments for transportation assets
  • reduced opportunities to generate asset remarketing income
  • inability to successfully consummate and manage ongoing acquisition and divestiture activities
  • reliance on Rolls-Royce in connection with our aircraft spare engine leasing businesses, and the risks that certain factors that adversely affect Rolls-Royce could have an adverse effect on our businesses
  • potential obsolescence of our assets

 

 

 

  • risks related to our international operations and expansion into new geographic markets, including laws, regulations, tariffs, taxes, treaties or trade barriers affecting our activities in the countries where we do business
  • failure to successfully negotiate collective bargaining agreements with the unions representing a substantial portion of our employees
  • inability to attract, retain, and motivate qualified personnel, including key management personnel
  • inability to maintain and secure our information technology infrastructure from cybersecurity threats and related disruption of our business
  • exposure to damages, fines, criminal and civil penalties, and reputational harm arising from a negative outcome in litigation, including claims arising from an accident involving transportation assets
  • changes in, or failure to comply with, laws, rules, and regulations
  • environmental liabilities and remediation costs
  • operational, functional and regulatory risks associated with climate change, severe weather events and natural disasters, and other environmental, social and governance matters
  • U.S. and global political conditions and the impact of increased geopolitical tension and wars, including the ongoing war between Russia and Ukraine and resulting sanctions and countermeasures, on domestic and global economic conditions in general, including supply chain challenges and disruptions
  • prolonged inflation or deflation
  • fluctuations in foreign exchange rates
  • deterioration of conditions in the capital markets, reductions in our credit ratings, or increases in our financing costs
  • the emergence of new variants of COVID-19 or the occurrence of another widespread health crisis and the impact of measures taken in response
  • inability to obtain cost-effective insurance
  • changes in assumptions, increases in funding requirements or investment losses in our pension and post-retirement plans
  • inadequate allowances to cover credit losses in our portfolio
  • asset impairment charges we may be required to recognize
  • inability to maintain effective internal control over financial reporting and disclosure controls and procedures

 

 

GATX CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(In millions, except per share data)

 

 

Three Months Ended

December 31

 

Twelve Months Ended

December 31

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Revenues

 

 

 

 

 

 

 

Lease revenue

$

323.6

 

 

$

294.0

 

 

$

1,251.4

 

 

$

1,154.6

 

Non-dedicated engine revenue

 

13.1

 

 

 

1.5

 

 

 

37.6

 

 

 

1.5

 

Marine operating revenue

 

0.8

 

 

 

2.7

 

 

 

6.9

 

 

 

18.9

 

Other revenue

 

31.2

 

 

 

24.5

 

 

 

115.0

 

 

 

98.0

 

Total Revenues

 

368.7

 

 

 

322.7

 

 

 

1,410.9

 

 

 

1,273.0

 

Expenses

 

 

 

 

 

 

 

Maintenance expense

 

90.7

 

 

 

71.4

 

 

 

344.8

 

 

 

292.7

 

Marine operating expense

 

1.1

 

 

 

2.4

 

 

 

6.5

 

 

 

14.1

 

Depreciation expense

 

98.2

 

 

 

89.3

 

 

 

376.3

 

 

 

357.5

 

Operating lease expense

 

9.0

 

 

 

9.0

 

 

 

36.0

 

 

 

36.1

 

Other operating expense

 

12.6

 

 

 

8.7

 

 

 

46.6

 

 

 

37.4

 

Selling, general and administrative expense

 

59.3

 

 

 

52.3

 

 

 

212.7

 

 

 

195.0

 

Total Expenses

 

270.9

 

 

 

233.1

 

 

 

1,022.9

 

 

 

932.8

 

Other Income (Expense)

 

 

 

 

 

 

 

Net gain on asset dispositions

 

25.2

 

 

 

24.5

 

 

 

130.3

 

 

 

77.9

 

Interest expense, net

 

(72.6

)

 

 

(57.3

)

 

 

(263.4

)

 

 

(214.0

)

Other expense

 

(2.3

)

 

 

(11.2

)

 

 

(9.4

)

 

 

(27.0

)

Income before Income Taxes and Share of Affiliates’ Earnings

 

48.1

 

 

 

45.6

 

 

 

245.5

 

 

 

177.1

 

Income taxes

 

(6.4

)

 

 

(16.0

)

 

 

(58.7

)

 

 

(54.8

)

Share of affiliates’ earnings, net of taxes

 

24.3

 

 

 

18.8

 

 

 

72.4

 

 

 

33.6

 

Net Income

$

66.0

 

 

$

48.4

 

 

$

259.2

 

 

$

155.9

 

 

 

 

 

 

 

 

 

Share Data

 

 

 

 

 

 

 

Basic earnings per share

$

1.82

 

 

$

1.38

 

 

$

7.13

 

 

$

4.41

 

Average number of common shares

 

35.7

 

 

 

35.2

 

 

 

35.7

 

 

 

35.4

 

 

 

 

 

 

 

 

 

Diluted earnings per share

$

1.81

 

 

$

1.36

 

 

$

7.12

 

 

$

4.35

 

Average number of common shares and common share equivalents

 

35.8

 

 

 

35.8

 

 

 

35.7

 

 

 

35.9

 

 

 

 

 

 

 

 

 

Dividends declared per common share

$

0.55

 

 

$

0.52

 

 

$

2.20

 

 

$

2.08

 

 

GATX CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In millions)

 

 

December 31

 

December 31

 

 

2023

 

 

 

2022

 

Assets

 

 

 

Cash and Cash Equivalents

$

450.7

 

 

$

303.7

 

Restricted Cash

 

0.1

 

 

 

0.3

 

Short-Term Investments

 

 

 

 

148.5

 

Receivables

 

 

 

Rent and other receivables

 

87.9

 

 

 

71.4

 

Finance leases (as lessor)

 

136.4

 

 

 

96.5

 

Less: allowance for losses

 

(5.9

)

 

 

(5.9

)

 

 

218.4

 

 

 

162.0

 

 

 

 

 

Operating Assets and Facilities

 

13,081.9

 

 

 

11,675.0

 

Less: allowance for depreciation

 

(3,670.7

)

 

 

(3,424.7

)

 

 

9,411.2

 

 

 

8,250.3

 

Lease Assets (as lessee)

 

 

 

Right-of-use assets, net of accumulated depreciation

 

212.0

 

 

 

243.5

 

 

 

212.0

 

 

 

243.5

 

 

 

 

 

Investments in Affiliated Companies

 

627.0

 

 

 

575.1

 

Goodwill

 

120.0

 

 

 

117.2

 

Other Assets ($0.8 million and $40.0 million related to assets held for sale)

 

286.6

 

 

 

271.4

 

Total Assets

$

11,326.0

 

 

$

10,072.0

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

Accounts Payable and Accrued Expenses

$

239.6

 

 

$

202.2

 

Debt

 

 

 

Commercial paper and borrowings under bank credit facilities

 

11.0

 

 

 

17.3

 

Recourse

 

7,388.1

 

 

 

6,431.5

 

 

 

7,399.1

 

 

 

6,448.8

 

Lease Obligations (as lessee)

 

 

 

Operating leases

 

226.8

 

 

 

257.9

 

 

 

226.8

 

 

 

257.9

 

 

 

 

 

Deferred Income Taxes

 

1,081.1

 

 

 

1,031.5

 

Other Liabilities

 

106.4

 

 

 

102.0

 

Total Liabilities

 

9,053.0

 

 

 

8,042.4

 

Total Shareholders’ Equity

 

2,273.0

 

 

 

2,029.6

 

Total Liabilities and Shareholders’ Equity

$

11,326.0

 

 

$

10,072.0

 

 

GATX CORPORATION AND SUBSIDIARIES

SEGMENT DATA (UNAUDITED)

Three Months Ended December 31, 2023

(In millions)

 

 

 

 

Rail

North America

 

 

Rail International

 

 

Portfolio Management

 

Other

 

GATX Consolidated

Revenues

 

 

 

 

 

 

 

 

 

Lease revenue

$

229.6

 

 

$

77.5

 

 

$

8.1

 

 

$

8.4

 

$

323.6

 

Non-dedicated engine revenue

 

 

 

 

 

 

 

13.1

 

 

 

 

 

13.1

 

Marine operating revenue

 

 

 

 

 

 

 

0.8

 

 

 

 

 

0.8

 

Other revenue

 

25.9

 

 

 

3.3

 

 

 

 

 

 

2.0

 

 

31.2

 

Total Revenues

 

255.5

 

 

 

80.8

 

 

 

22.0

 

 

 

10.4

 

 

368.7

 

Expenses

 

 

 

 

 

 

 

 

 

Maintenance expense

 

73.5

 

 

 

16.5

 

 

 

 

 

 

0.7

 

 

90.7

 

Marine operating expense

 

 

 

 

 

 

 

1.1

 

 

 

 

 

1.1

 

Depreciation expense

 

67.4

 

 

 

18.4

 

 

 

8.4

 

 

 

4.0

 

 

98.2

 

Operating lease expense

 

9.0

 

 

 

 

 

 

 

 

 

 

 

9.0

 

Other operating expense

 

5.7

 

 

 

3.2

 

 

 

2.9

 

 

 

0.8

 

 

12.6

 

Total Expenses

 

155.6

 

 

 

38.1

 

 

 

12.4

 

 

 

5.5

 

 

211.6

 

Other Income (Expense)

 

 

 

 

 

 

 

 

 

Net gain (loss) on asset dispositions

 

23.1

 

 

 

4.6

 

 

 

(2.5

)

 

 

 

 

25.2

 

Interest (expense) income, net

 

(49.5

)

 

 

(15.7

)

 

 

(8.9

)

 

 

1.5

 

 

(72.6

)

Other (expense) income

 

(6.7

)

 

 

2.8

 

 

 

0.7

 

 

 

0.9

 

 

(2.3

)

Share of affiliates’ pre-tax (loss) earnings

 

(0.1

)

 

 

 

 

 

32.4

 

 

 

 

 

32.3

 

Segment profit

$

66.7

 

 

$

34.4

 

 

$

31.3

 

 

$

7.3

 

$

139.7

 

Less:

 

 

 

 

 

 

 

 

 

Selling, general and administrative expense

 

59.3

 

Income taxes (includes $8.0 related to affiliates’ earnings)

 

14.4

 

Net income

$

66.0

 

 

 

 

 

 

 

 

 

 

 

Selected Data:

 

 

 

 

 

 

 

 

 

Investment volume

$

322.1

 

 

$

94.4

 

 

$

 

 

$

11.0

 

$

427.5

 

 

 

 

 

 

 

 

 

 

 

Net Gain (loss) on Asset Dispositions

 

 

 

 

 

 

 

 

 

Asset Remarketing Income:

 

 

 

 

 

 

 

 

 

Net gains (losses) on disposition of owned assets

$

23.3

 

 

$

4.4

 

 

$

(2.6

)

 

$

 

$

25.1

 

Residual sharing income

 

0.1

 

 

 

 

 

 

0.1

 

 

 

 

 

0.2

 

Non-remarketing net gains (1)

 

(0.3

)

 

 

0.5

 

 

 

 

 

 

 

 

0.2

 

Asset impairments

 

 

 

 

(0.3

)

 

 

 

 

 

 

 

(0.3

)

 

$

23.1

 

 

$

4.6

 

 

$

(2.5

)

 

$

 

$

25.2

_________

(1) Includes net gains (losses) from scrapping of railcars.

 

GATX CORPORATION AND SUBSIDIARIES

SEGMENT DATA (UNAUDITED)

Three Months Ended December 31, 2022

(In millions)

 

 

 

 

Rail

North America

 

 

Rail International

 

 

Portfolio Management

 

Other

 

GATX Consolidated

Revenues

 

 

 

 

 

 

 

 

 

Lease revenue

$

211.0

 

 

$

66.8

 

 

$

8.2

 

 

$

8.0

 

 

$

294.0

 

Non-dedicated engine revenue

 

 

 

 

 

 

 

1.5

 

 

 

 

 

 

1.5

 

Marine operating revenue

 

 

 

 

 

 

 

2.7

 

 

 

 

 

 

2.7

 

Other revenue

 

20.2

 

 

 

2.6

 

 

 

0.1

 

 

 

1.6

 

 

 

24.5

 

Total Revenues

 

231.2

 

 

 

69.4

 

 

 

12.5

 

 

 

9.6

 

 

 

322.7

 

Expenses

 

 

 

 

 

 

 

 

 

Maintenance expense

 

58.4

 

 

 

12.4

 

 

 

 

 

 

0.6

 

 

 

71.4

 

Marine operating expense

 

 

 

 

 

 

 

2.4

 

 

 

 

 

 

2.4

 

Depreciation expense

 

64.9

 

 

 

17.1

 

 

 

4.2

 

 

 

3.1

 

 

 

89.3

 

Operating lease expense

 

9.0

 

 

 

 

 

 

 

 

 

 

 

 

9.0

 

Other operating expense

 

5.3

 

 

 

2.3

 

 

 

0.6

 

 

 

0.5

 

 

 

8.7

 

Total Expenses

 

137.6

 

 

 

31.8

 

 

 

7.2

 

 

 

4.2

 

 

 

180.8

 

Other Income (Expense)

 

 

 

 

 

 

 

 

 

Net gain (loss) on asset dispositions

 

29.7

 

 

 

(3.3

)

 

 

(2.0

)

 

 

0.1

 

 

 

24.5

 

Interest expense, net

 

(38.8

)

 

 

(12.1

)

 

 

(5.1

)

 

 

(1.3

)

 

 

(57.3

)

Other expense

 

(1.2

)

 

 

(4.0

)

 

 

 

 

 

(6.0

)

 

 

(11.2

)

Share of affiliates’ pre-tax earnings

 

0.2

 

 

 

 

 

 

24.9

 

 

 

 

 

 

25.1

 

Segment profit (loss)

$

83.5

 

 

$

18.2

 

 

$

23.1

 

 

$

(1.8

)

 

$

123.0

 

Less:

 

 

 

 

 

 

 

 

 

Selling, general and administrative expense

 

52.3

 

Income taxes (includes $6.3 related to affiliates’ earnings)

 

22.3

 

Net income

$

48.4

 

 

 

 

 

 

 

 

 

 

 

Selected Data:

 

 

 

 

 

 

 

 

 

Investment volume

$

139.3

 

 

$

66.1

 

 

$

149.7

 

 

$

12.8

 

 

$

367.9

 

 

 

 

 

 

 

 

 

 

 

Net Gain (loss) on Asset Dispositions

 

 

 

 

 

 

 

 

 

Asset Remarketing Income:

 

 

 

 

 

 

 

 

 

Net gains on disposition of owned assets

$

27.8

 

 

$

0.6

 

 

$

 

 

$

0.1

 

 

$

28.5

 

Residual sharing income

 

0.1

 

 

 

 

 

 

0.8

 

 

 

 

 

 

0.9

 

Non-remarketing net gains (1)

 

1.8

 

 

 

(0.1

)

 

 

 

 

 

 

 

 

1.7

 

Asset impairments

 

 

 

 

(3.8

)

 

 

(2.8

)

 

 

 

 

 

(6.6

)

 

$

29.7

 

 

$

(3.3

)

 

$

(2.0

)

 

$

0.1

 

 

$

24.5

 

__________

(1) Includes net gains (losses) from scrapping of railcars.

 

GATX CORPORATION AND SUBSIDIARIES

SEGMENT DATA (UNAUDITED)

Twelve Months Ended December 31, 2023

(In millions)

 

 

 

 

Rail

North America

 

 

Rail International

 

 

Portfolio Management

 

Other

 

GATX Consolidated

Revenues

 

 

 

 

 

 

 

 

 

Lease revenue

$

888.8

 

 

$

296.6

 

 

$

32.6

 

 

$

33.4

 

$

1,251.4

 

Non-dedicated engine revenue

 

 

 

 

 

 

 

37.6

 

 

 

 

 

37.6

 

Marine operating revenue

 

 

 

 

 

 

 

6.9

 

 

 

 

 

6.9

 

Other revenue

 

93.9

 

 

 

12.9

 

 

 

0.1

 

 

 

8.1

 

 

115.0

 

Total Revenues

 

982.7

 

 

 

309.5

 

 

 

77.2

 

 

 

41.5

 

 

1,410.9

 

Expenses

 

 

 

 

 

 

 

 

 

Maintenance expense

 

276.6

 

 

 

64.1

 

 

 

 

 

 

4.1

 

 

344.8

 

Marine operating expense

 

 

 

 

 

 

 

6.5

 

 

 

 

 

6.5

 

Depreciation expense

 

265.9

 

 

 

68.2

 

 

 

28.3

 

 

 

13.9

 

 

376.3

 

Operating lease expense

 

36.0

 

 

 

 

 

 

 

 

 

 

 

36.0

 

Other operating expense

 

25.9

 

 

 

10.4

 

 

 

7.3

 

 

 

3.0

 

 

46.6

 

Total Expenses

 

604.4

 

 

 

142.7

 

 

 

42.1

 

 

 

21.0

 

 

810.2

 

Other Income (Expense)

 

 

 

 

 

 

 

 

 

Net gain on asset dispositions

 

120.5

 

 

 

7.0

 

 

 

2.2

 

 

 

0.6

 

 

130.3

 

Interest (expense) income, net

 

(182.9

)

 

 

(56.2

)

 

 

(29.8

)

 

 

5.5

 

 

(263.4

)

Other (expense) income

 

(8.0

)

 

 

(4.2

)

 

 

0.2

 

 

 

2.6

 

 

(9.4

)

Share of affiliates’ pre-tax (loss) earnings

 

(0.6

)

 

 

 

 

 

98.7

 

 

 

 

 

98.1

 

Segment profit

$

307.3

 

 

$

113.4

 

 

$

106.4

 

 

$

29.2

 

$

556.3

 

Less:

 

 

 

 

 

 

 

 

 

Selling, general and administrative expense

 

212.7

 

Income taxes (includes $25.7 related to affiliates’ earnings)

 

84.4

 

Net income

$

259.2

 

 

 

 

 

 

 

 

 

 

 

Selected Data:

 

 

 

 

 

 

 

 

 

Investment volume

$

976.9

 

 

$

382.4

 

 

$

267.3

 

 

$

38.4

 

$

1,665.0

 

 

 

 

 

 

 

 

 

 

 

Net Gain (loss) on Asset Dispositions

 

 

 

 

 

 

 

 

 

Asset Remarketing Income:

 

 

 

 

 

 

 

 

 

Net gains on disposition of owned assets

$

111.7

 

 

$

4.9

 

 

$

2.9

 

 

$

0.3

 

$

119.8

 

Residual sharing income

 

0.4

 

 

 

 

 

 

0.5

 

 

 

 

 

0.9

 

Non-remarketing net gains (1)

 

8.4

 

 

 

2.4

 

 

 

 

 

 

0.3

 

 

11.1

 

Asset impairments

 

 

 

 

(0.3

)

 

 

(1.2

)

 

 

 

 

(1.5

)

 

$

120.5

 

 

$

7.0

 

 

$

2.2

 

 

$

0.6

 

$

130.3

Contacts

GATX Corporation

Shari Hellerman

Senior Director, Investor Relations, ESG, and External Communications

312-621-4285

shari.hellerman@gatx.com

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