The Greenbrier Companies, GATX and Wabtec all reported quarterly earnings this week. Among the themes expressed during earnings calls was pervading market uncertainty domestically but an abundance of international opportunities.
Looming rail car retirements and high rates for rail car scrapping — not rail volumes — are driving the rail car market, according to the CEOs of rail car leasing companies and rail equipment manufacturers.
Ohio Gov. Mike DeWine wants President Joe Biden to declare East Palestine a disaster area, while Norfolk Southern calls for rail car owners associated with the Feb. 3 derailment to help pay cleanup costs.
Reduced North American rail traffic isn’t dampening the outlook for these rail equipment manufacturers and rail car lessors.
Rail car manufacturer and lessor GATX sees a strong secondary market and continued demand for rail cars to help support the company this year.
Railcar manufacturers expressed five themes in recent earnings calls. Their consensus: There is still much to be upbeat about.
Trinity Rail Group will supply a mix of 15,000 tank and freight railcars to GATX over a span of six years.
Pent-up demand for railcars will support GATX even as rail service clears up.
The U.S. railcar lessor doesn’t expect the war in Ukraine to impact company profits, but the conflict is affecting operations in Poland.
North American rail equipment manufacturers have customers and offices in the region, and they’re assessing what steps to take next as the situation unfolds.
Paul Titterton will become president of GATX’s Rail North America division and Scott Pelkey has assumed the role of CFO of CSX.
The railcar leasing market for 2022 feels more solid than past years, executives said Tuesday during GATX’s fourth-quarter 2021 earnings call.
GATX President and CEO Brian Kenney is retiring, and EVP Bob Lyons will succeed him.
Although macroeconomic factors and lower train speeds support railcar leasing, the growth trend might be choppy as the COVID-19 pandemic and supply chain disruptions still weigh on the market, Trinity Industries and GATX said during their third-quarter 2021 earnings calls.
A market recovery is underway for railcar lessors and equipment manufacturers, but the market also has a ways to go before it bounces back completely, according to industry observations.
Revenue gains and lower costs in the fourth quarter weren’t enough to offset losses from GATX’s passenger airline-affiliated joint venture with Rolls-Royce.
Railcar lessor GATX acquires tank container lessor Trifleet in 175 million euro deal.
Revenue growth in the railcar lessor’s international segment and in its portfolio management program affiliated with Rolls-Royce helped offset losses for its North American segment.
These factors are dampening lease rates and renewal activity, the company said during its second-quarter earnings call on Tuesday.
The railcar lessor is looking for further add-ons to its fleet as competitors face pressure from the COVID-19 pandemic and the volatile crude oil market.
Rand Logistics will purchase the American Steamship Company for $260 million.
Spare aircraft engine dispositions stave off weakened demand for railcars in North America.
The rail equipment lessor said corrosion damage was found in 160 railcars.
The rail equipment manufacturer sees high utilization rate but says economy faces uncertainty.
With rail traffic lower year-over-year and PSR initiatives in full swing, it’s understandable that soft railcar demand attracted attention at an investor conference.
While investing in the North American railcar market is risky right now because the market is so uncertain, Europe and India are among the places where there are “attractive’ opportunities to invest in railcars, officials with railcar lessor GATX said on the company’s second quarter earnings call on July 17.
The railcar leasing company posted diluted earnings per share (EPS) of $1.86, up from $1.01 in the second quarter of 2018
GATX’s (NYSE: GATX) first quarter profit fell 46 percent to $41.5 million, or $1.12 per diluted share, from $76.3 million, or $1.98 per diluted share, in the first quarter of 2018. Chicago-based GATX is a railcar lessor, providing railcars and boxcars to freight railroads and shippers.
