GATX's 1Q Profit Dropped, Revenue Rose

GATX's 1Q Profit Dropped, Revenue Rose

GATX reported net income in the first quarter of 2013 was $27.1 million, falling 10.5 percent from $30.3 million in the first quarter of 2012.

The railcar leasing company’s North American segment profit was $50.3 million in the first quarter of 2013, compared with $50.7 million in the first quarter of 2012, driven by lower remarketing activity and increased maintenance expense, but was “substantially” offset by higher lease revenue, GATX said in a written statement. The company’s quarterly international segment profit was $18.6 million, jumping from $7.9 million in the same period last year.

American Steamship Company, a subsidiary of GATX that operates a fleet in the Great Lakes, reported segment profit of $0.8 million in the first quarter of 2013, compared with $2.1 million in the first quarter of 2012. Portfolio Management posted profit of $12.5 million, dropping from $22.0 million.

Total quarterly revenue was $272.2 million, increasing 6.1 percent from $256.5 million in the same quarter in the previous year. Lease revenue in the first quarter accounted for $237.2 million, compared with $225.5 million in the first quarter of 2012, and marine revenue accounted for $18.5 million, versus $17.5 million.

“The North American railcar leasing market remains strong,” said Brian A. Kenney, president and CEO. “We continue to capitalize on the current market conditions by increasing lease rates and stretching lease terms.”