GATX Rail earnings rise; fleet utilization: 98.2%

GATX Corp. has reported Rail segment profit of $63.0 million for the third quarter of 2011, compared with third-quarter 2010 Rail profit of $32.7 million. “The improvement in Rail segment profit is primarily driven by higher lease income due to more cars on lease, stronger asset remarketing activity, and lower switching and storage costs as a result of higher fleet utilization,” said the company in an earnings statement released Thursday.

On Sept. 30, 2011, GATX Rail’s North American fleet totaled approximately 109,000 cars. Fleet utilization was 98.2%, consistent with the second quarter and up compared with 96.8% at the end of third quarter 2010. Renewal lease rates increased 9.6% over the expiring rates, compared with a 4.4% increase in the second quarter of 2011 and a decline of 15.7% in the third quarter of 2010. The average lease renewal term for cars in the third quarter was 49 months, up from 41 months in the second quarter and 36 months in the third quarter of 2010.

Rail segment profit was $171.3 million year-to-date, compared with $111.4million in the same period of 2010. The 2011 and 2010 year-to-date results include positive pre-tax adjustments of $11.0 million and negative pre-tax adjustments of $8.9 million, respectively, related to interest rate swaps.

GATX Rail’s European wholly owned tank car fleet totaled approximately 21,000 cars and utilization was 96.0% at the end of the third quarter, compared to 95.7% at the end of the second quarter and 95.3% at the end of third-quarter 2010.