GATX Profit Plunges

GATX, a railcar and maritime asset leasing provider, earned a profit of $12.7 million on total gross income of $288.1 million in the second quarter. Gross income was down 24 percent. Profit plunged 68 percent due partly to after-tax unrealized losses of $6.7 million related to certain interest rate swaps at GATX’s AAE Cargo affiliate

“The operating environment was challenging across all of our markets in the second quarter,” said Brian A. Kenney, president and chief executive officer. “In rail, customers continue to trim their rail fleets and seek the most competitive rates when renewing leases.”

Charter rates at the marine joint ventures have improved slightly over the fourth quarter 2008 and first quarter this year, but they remain well below rates achieved in recent years, Kenney said.

American Steamship Company faces a steep decline in steel manufacturing on the Great Lakes, leading to dramatically lower demand for iron ore shipments, he said.

Kenney said the company expects shipping volume on the Great Lakes to remain depressed in the second half of 2009.

Contact Thomas L. Gallagher at tgallagher@joc.com.