GATX Rail segment posts higher earnings
Written by William C. Vantuono, Editor-in-ChiefGATX Corp. reported Thursday that its Rail segment earned a net profit of $51.6 million in the first quarter of 2011, compared with $49.3 million in the 2010 first quarter.
“As we expected entering 2011, rail market conditions continue to improve. In North America, fleet utilization increased to 97.8%, compared to 97.4% in the prior quarter," said Brian A. Kenney, president and CEO of GATX. “As the number of idle railcars in the industry continues to decline, our commercial team is focused on improving lease rates. These efforts are reflected in GATX’s Lease Price Index , which improved to negative 0.5% during the quarter. In March, we also ordered 12,500 new railcars that will deliver over a five-year period. Coupled with the sizable existing railcar investments made in the last two years, this order enables us to serve our customers with attractively priced, high quality railcars.”
GATX reported corporate first-quarter net income of $19.9 million compared with net income of $18.7 million in the first quarter of 2010. GATX also has marine and aircraft engine leasing operations.
