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Sep 30, 2020
GATX Q3 2020 Earnings Report
GATX performed well despite continued challenges in the markets, with Rail North America's fleet utilization remaining high and Portfolio Management benefiting from a large gain.
Key Takeaways
GATX Corporation reported a net income from continuing operations of $48.2 million, or $1.36 per diluted share, for the third quarter of 2020, compared to $37.2 million, or $1.03 per diluted share, in the third quarter of 2019. Rail North America's fleet utilization remained high at 98.2%. Portfolio Management realized an after-tax gain of $24.0 million on a transaction involving the refinancing and sale of a group of aircraft spare engines.
Net income from continuing operations for Q3 2020 was $48.2 million, or $1.36 per diluted share.
Rail North America's fleet utilization remained high at 98.2%.
Renewal success rate was 58.1% during the quarter in Rail North America.
Portfolio Management realized an after-tax gain of $24.0 million on a transaction involving the refinancing and sale of a group of aircraft spare engines.
GATX
GATX
GATX Revenue by Segment
Revenue by Segment
Rail North America Revenue
CapyFin.comRail International Revenue
CapyFin.comEngine Leasing Revenue
CapyFin.com Forward Guidance
The global economic recovery remains tenuous due to a potential COVID-19 resurgence. The company remains focused on keeping employees safe, continuing commercial and operational execution, and pursuing attractively-priced growth opportunities.
Positive Outlook
- Keeping employees safe
- Continuing commercial and operational execution
- Pursuing attractively-priced growth opportunities for shareholders
- Rail International continues to perform well
- GATX Rail India’s fleet utilization is 100% and its fleet growth trajectory is resuming absent further COVID-19 disruptions.
Challenges Ahead
- Global economic recovery remains tenuous due to a potential COVID-19 resurgence
- North American railcar leasing market remains negatively affected by a persistent oversupply of railcars
- Weakness in certain markets, exacerbated by COVID-19’s economic impact
- RRPF operations remain challenged by the severe drop in demand for global air travel
- Higher fleet churn as a result of our lower renewal success
Revenue & Expenses
Visualization of income flow from segment revenue to net income