GATX Corp. (GMT, Financial) filed Quarterly Report for the period ended 2011-09-30.
Gatx Corp. has a market cap of $1.85 billion; its shares were traded at around $39.7 with a P/E ratio of 23.1 and P/S ratio of 1.5. The dividend yield of Gatx Corp. stocks is 2.9%. Gatx Corp. had an annual average earning growth of 2.9% over the past 5 years.
Net income was $79.2 million, or $1.68 per diluted share, for the first nine months of 2011 compared to net income of $61.3 million, or $1.31 per diluted share, for the first nine months of 2010. Results for the first nine months of 2010 include after-tax income of $4.1 million, or $0.09 per diluted share, related to the favorable resolution of a litigation matter, $3.7 million, or $0.08 per diluted share, related to the reversal of an income tax accrual and $1.9 million, or $0.04 per diluted share, related to a deferred tax benefit attributable to a reduction in the statutory tax rates of the United Kingdom, partially offset by after-tax unrealized losses of $8.0 million, or $0.17 per diluted share, related to certain interest rate swaps at GATXs European Rail affiliate, AAE Cargo A.G. (AAE). The 2011 results include a net benefit of $9.8 million, or $0.21 per diluted share, in after-tax unrealized gains related to certain interest rate swaps at AAE and a $4.1 million, or $0.09 per diluted share, deferred tax benefit attributable to a further reduction in the statutory tax rates of the United Kingdom.
Net income was $32.9 million, or $0.70 per diluted share, for the third quarter of 2011 compared to net income of $21.1 million, or $0.45 per diluted share, for the third quarter of 2010. Third quarter 2010 results include $2.7 million, or $0.06 per diluted share, of after-tax unrealized losses related to certain interest rate swaps at AAE and a $1.9 million, or $0.04 per diluted share, deferred tax benefit attributable to a reduction in the statutory tax rates of the United Kingdom. Results for the third quarter of 2011 include $2.8 million, or $0.06 per diluted share, of after-tax unrealized losses related to certain interest rate swaps at AAE and a $4.1 million, or $0.09 per diluted share, deferred tax benefit attributable to a further reduction in the statutory tax rates of the United Kingdom.
Market conditions continued to improve in the third quarter of 2011. Industry-wide, U.S. carloadings have increased modestly. Rails utilization in North America was 98.2%, consistent with the second quarter and higher than utilization of 96.8% at September 30, 2010. Lease rates on renewals improved during the quarter as indicated by the weighted average lease renewal rate on cars in the GATX Lease Price Index (the LPI, see definition below), which increased 9.6% from the weighted average expiring lease rate, compared to an increase of 4.4% for the second quarter and a decrease of 15.7% for the third quarter of 2010.
Rail entered 2011 with approximately 21,000 cars on leases scheduled to expire during the year, of which approximately 14,600 occurred through the current quarter. The majority of these leases were either renewed or the underlying railcars were placed with new customers. Lease terms on renewals for cars in the LPI averaged 49 months in the current quarter compared to 41 months for the second quarter and 36 months for the third quarter of 2010. In Europe, Rails wholly-owned tank car fleet increased due to investments in new cars. At the end of the third quarter of 2011, fleet utilization was 96.0% compared to 95.7% at the end of the second quarter and 95.3% at September 30, 2010. AAE, which serves the European freight railcar markets, has experienced modest improvement in its markets and fleet utilization is stable. During the first nine months of 2011, Rails investment volume was $290.1 million, compared to $181.5 million in 2010. In March 2011, GATX entered into an agreement to acquire 12,500 newly built railcars that are expected to deliver ratably over a five-year period.
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Gatx Corp. has a market cap of $1.85 billion; its shares were traded at around $39.7 with a P/E ratio of 23.1 and P/S ratio of 1.5. The dividend yield of Gatx Corp. stocks is 2.9%. Gatx Corp. had an annual average earning growth of 2.9% over the past 5 years.
Highlight of Business Operations:
Operating results for the nine months ended September 30, 2011 are not necessarily indicative of the results that may be achieved for the entire year ending December 31, 2011. For further information, refer to GATXs Annual Report on Form 10-K, as filed with the SEC, which contains the Companys consolidated financial statements for the year ended December 31, 2010.Net income was $79.2 million, or $1.68 per diluted share, for the first nine months of 2011 compared to net income of $61.3 million, or $1.31 per diluted share, for the first nine months of 2010. Results for the first nine months of 2010 include after-tax income of $4.1 million, or $0.09 per diluted share, related to the favorable resolution of a litigation matter, $3.7 million, or $0.08 per diluted share, related to the reversal of an income tax accrual and $1.9 million, or $0.04 per diluted share, related to a deferred tax benefit attributable to a reduction in the statutory tax rates of the United Kingdom, partially offset by after-tax unrealized losses of $8.0 million, or $0.17 per diluted share, related to certain interest rate swaps at GATXs European Rail affiliate, AAE Cargo A.G. (AAE). The 2011 results include a net benefit of $9.8 million, or $0.21 per diluted share, in after-tax unrealized gains related to certain interest rate swaps at AAE and a $4.1 million, or $0.09 per diluted share, deferred tax benefit attributable to a further reduction in the statutory tax rates of the United Kingdom.
Net income was $32.9 million, or $0.70 per diluted share, for the third quarter of 2011 compared to net income of $21.1 million, or $0.45 per diluted share, for the third quarter of 2010. Third quarter 2010 results include $2.7 million, or $0.06 per diluted share, of after-tax unrealized losses related to certain interest rate swaps at AAE and a $1.9 million, or $0.04 per diluted share, deferred tax benefit attributable to a reduction in the statutory tax rates of the United Kingdom. Results for the third quarter of 2011 include $2.8 million, or $0.06 per diluted share, of after-tax unrealized losses related to certain interest rate swaps at AAE and a $4.1 million, or $0.09 per diluted share, deferred tax benefit attributable to a further reduction in the statutory tax rates of the United Kingdom.
Market conditions continued to improve in the third quarter of 2011. Industry-wide, U.S. carloadings have increased modestly. Rails utilization in North America was 98.2%, consistent with the second quarter and higher than utilization of 96.8% at September 30, 2010. Lease rates on renewals improved during the quarter as indicated by the weighted average lease renewal rate on cars in the GATX Lease Price Index (the LPI, see definition below), which increased 9.6% from the weighted average expiring lease rate, compared to an increase of 4.4% for the second quarter and a decrease of 15.7% for the third quarter of 2010.
Rail entered 2011 with approximately 21,000 cars on leases scheduled to expire during the year, of which approximately 14,600 occurred through the current quarter. The majority of these leases were either renewed or the underlying railcars were placed with new customers. Lease terms on renewals for cars in the LPI averaged 49 months in the current quarter compared to 41 months for the second quarter and 36 months for the third quarter of 2010. In Europe, Rails wholly-owned tank car fleet increased due to investments in new cars. At the end of the third quarter of 2011, fleet utilization was 96.0% compared to 95.7% at the end of the second quarter and 95.3% at September 30, 2010. AAE, which serves the European freight railcar markets, has experienced modest improvement in its markets and fleet utilization is stable. During the first nine months of 2011, Rails investment volume was $290.1 million, compared to $181.5 million in 2010. In March 2011, GATX entered into an agreement to acquire 12,500 newly built railcars that are expected to deliver ratably over a five-year period.
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