On Monday, GATX Corporation’s (NYSE: GATX) shares recorded a trading volume 0.23 million shares as compared to its average volume of 0.28 million shares. The shares price traded between $82.62 and $84.69 during the last trading session below with -1.86 percent at $82.77. The company has 38.04 million shares outstanding and market value of 37.07 million. Over the one year trading period, the stock has a peak price of $91.12 and its down is recorded at $56.00.
GATX Corporation (GATX) recently stated 2018 second quarter net income of $38.8M or $1.01 per diluted share, contrast to net income of $53.4M or $1.35 per diluted share in the second quarter of 2017. Net income for the first six months of 2018 was $115.1M or $2.99 per diluted share, contrast to $110.9M or $2.79 per diluted share in the previous year period. The 2018 second quarter and year-to-date results include a net negative impact of $5.8M or $0.15 per diluted share, attributed to costs associated with the closure of a railcar maintenance facility in Germany. The 2017 second quarter and year-to-date results include net gains of about $1.1M or $0.03 per diluted share, associated with the planned exit of the majority of Portfolio Management’s marine investments. Details related to these items are provided in the attached Supplemental Information under Tax Adjustments and Other Items.
Brian A. Kenney, president and chief executive officer of GATX stated, “Rail North America experienced a more favorable industry environment in the second quarter, as railroad car loadings raised and railroad velocity reduced relative to 2017. Although lease revenue remains under pressure Because of continued railcar oversupply and a large railcar manufacturing backlog, Rail North America continues to perform extremely well. Fleet utilization was 98.9 percent at quarter end, the renewal success rate was 78.6 percent during the quarter, absolute lease rates raised across the fleet and costs remain under control. The renewal lease rate change for GATX’s Lease Price Index was negative 16.1 percent in the second quarter with an average renewal term of 41 months.
RAIL NORTH AMERICA
Rail North America stated section profit of $64.2M in the second quarter of 2018, contrast to $74.9M in the second quarter of 2017. Lower section profit was a result of lower lease revenues and lower gains on asset dispositions. Year-to-date, Rail North America stated section profit of $173.1M, contrast to $167.9M in the same period of 2017. Lower revenues in 2018 were over offset by higher gains on asset dispositions in 2018, resulting in slightly higher section profit.
At June 30, 2018, Rail North America’s wholly owned fleet was comprised of about 119,000 railcars, including about 16,000 boxcars. The following fleet statistics and performance discussion exclude the boxcar fleet.
Fleet utilization was 98.9 percent at the end of the second quarter, contrast to 98.2 percent at the end of the previous quarter and 98.8 percent at the end of the second quarter of 2017. During the second quarter of 2018, the renewal lease rate change of the GATX Lease Price Index (LPI) was negative 16.1 percent. This compares to negative 11.6 percent in the previous quarter and negative 21.4 percent in the second quarter of 2017. The average lease renewal term for cars included in the LPI during the second quarter was 41 months, contrast to 34 months in the previous quarter and 32 months in the second quarter of 2017. Rail North America’s investment volume during the second quarter was $149.1M.
IN THE PROFITABILITY ANALYSIS:
Net profit margin of the firm was recorded at 37.00 percent and operating profit margin was calculated at 22.90 percent while gross profit margin was measured as 66.40 percent. Beta factor, which measures the riskiness of the security, was registered at 1.42.