GATX posts flat 2015 revenues, earnings

The railcar leasing company’s revenues and earnings were both down slightly year-over-year in the fourth quarter, but its full year results were almost identical to the previous year.    GATX Corporation reported net income of $58.2 million on $378.7 million in revenues for the fourth quarter of 2015, decreases of 0.5 percent and 5.7 percent, respectively, compared with the same 2014 period.
   The railcar leasing company posted earnings per share (EPS) of $1.37 per diluted share, however, up from $1.30 per diluted share in the fourth quarter of 2014.
   For the full year in 2015, GATX net income grew just 0.01 percent (around $300,000) to $205.3 million on revenues of $1.45 billion, essentially flat compared to the previous year. Full year EPS grew to $4.69 per diluted share from $4.48 per diluted share in 2014.
   According to the company’s most recent financial statements, its “2015 results include net negative impacts from the exit of Portfolio Management’s marine investments and other items of $3.0 million, or $0.07 per diluted share for the fourth quarter and $29.6 million, or $0.68 per diluted share for the full year.”
   GATX also noted it acquired $125 million of its own stock during the year.
   Headquartered in Chicago, Ill., GATX Corporation is an independent global railcar lessor operating fleets in North America, Europe and Asia via its four subsidiaries: Rail North America, Rail International, American Steamship Company (ASC) and Portfolio Management.
   “GATX achieved excellent financial results in the fourth quarter, resulting in another record earnings year,” President and CEO Brian A. Kenney said in a statement. “In addition to producing outstanding financial results in 2015, our disciplined strategy has positioned GATX well for the long term. Over the last few years, we dramatically extended lease renewal terms at very attractive rates and optimized our fleet by selling select railcars into a robust secondary market. Additionally, we utilized our supply agreement to purchase new railcars at an attractive cost, limiting our spot market orders in a high-cost manufacturing environment.”
   Kenney said the company’s Rail North America segment performed “exceptionally well” in 2015, despite a growing oversupply of energy-related railcars in North America.
   “Against a backdrop of increasing global economic uncertainty and a pronounced slowdown in the U.S. energy markets, GATX will continue to benefit from our fleet actions over the past few years,” he added. “By extending average lease terms and optimizing our fleet, we reduced the number of leases scheduled for expiration in 2016 relative to the prior few years. For car types serving weak market segments, GATX will focus on maintaining utilization and shortening lease terms.”
   Looking ahead to 2016, Kenney said the company expects segment profits to decrease for the Rail North America segment, and remain relatively flat for Rail International and Portfolio Management but increase for ASC.
   GATX is projecting EPS in 2016 to be in the range of $5.25 per diluted share to $5.45 per diluted share.