GATX’s Q2 profit tumbles

The railcar lessor’s net income fell 27.3 percent from last year’s second quarter to $38.8 million.    Chicago-based global railcar lessor GATX reported a 27.3 percent year-over-year drop in net income for the second quarter of 2018 to $38.8 million.
   Revenues slipped 0.3 percent from last year’s second quarter to $349.5 million.
   The Rail North America segment had a profit of $64.2 million for the quarter, down 14.3 percent year-over-year due to lower lease revenues and lower gains on asset dispositions. At the close of the quarter, Rail North America’s wholly owned fleet consisted of about 119,000 railcars, including around 16,000 boxcars.
   The Rail International segment — comprised of GATX’s operations in Europe and wholly owned railcar leasing businesses in India and Russia — had a profit of $12.8 million for the quarter, down 22.9 percent from last year’s second quarter. The second quarter 2018 result included $8.6 of expense ($5.8 million after tax) related to the closure of GATX Rail Europe’s (GRE) railcar maintenance facility in Germany. GRE’s fleet consisted of around 23,100 railcars at the end of this year’s second quarter.
   Meanwhile, GATX’s Portfolio Management segment had a profit of $11.4 million for the quarter, down 42.4 percent year-over-year, mainly due to lower residual sharing fees. The second quarter 2017 segment profit included a net pre-tax gain of about $1.8 million ($1.1 after-tax) associated with the planned exit of the majority of the marine investments.
   On a bright note, GATX’s American Steamship Co. (ASC) subsidiary saw profits for the quarter surge 23.1 percent from last year’s second quarter to $8 million. ASC operates a fleet of 12 U.S.-flagged vessels on the Great Lakes, which collectively carried 8.1 million net tons of cargo during the quarter.