GATX SELL-OFFS BOOST 1ST-QUARTER EARNINGS
GATX Corp. reported first-quarter consolidated net income of $17.7 million, due largely to the sale of GATX Terminals Corp.'s domestic and European operations.
The net income includes $159.3 million of after-tax gains from the sale of the U.S. and European operations, minus charges due to the closing of other business development activities, and $20.2 million of after-tax charges due to the closing of GATX Rail's East Chicago repair facility and other non-recurring charges.
Excluding the net gain, GATX saw first-quarter consolidated income of $31.6 million, compared to $40.6 million in the year-earlier period.
GATX sold off its GATX Terminals operations to redeploy its capital into its higher-return finance and leasing businesses. The company also completed three other transactions in the quarter, purchasing a 50-percent interest in Pembroke Group, an aircraft leasing entity with more than $850 million in assets; acquired a rail operation in Poland which included 12,000 railcars; and purchased a $370-million technology equipment portfolio from El Camino Resources.
GATX Rail reported a net loss of $4.1 million for the first quarter, including a $16.2-million after-tax charge related to the closing of the East Chicago repair facility and other non-recurring items. Excluding those items, GATX Rail's income was $12.1 million, compared to $18.5 million in the year-earlier period.
Railcar utilization was down slightly to 932 percent.