), a leader in leasing transportation assets, reported
third-quarter 2013 adjusted earnings of $1.09 per share, beating
the Zacks Consensus Estimate of $1.00. The results showed an
improvement from 75 cents earned a year ago.
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Adjusted earnings for the third quarter 2013 excluded the impact
of benefits from tax adjustments and other items of $2.8 million
(6 cents per share).
Revenues increased 6.4% year over year to $353.2 million and were
in line with the Zacks Consensus Estimate. Operating expenses
increased to $281.1 million from $263.9 million in the year-ago
Profit from the
Rail North America
segment increased to $57.9 million in the reported quarter from
$45.6 million in the year-ago quarter driven by higher lease
rates and asset remarketing activities.
GATX' Lease Price Index (LPI) improved substantially to 34.3%
from 26.4% in the year-ago quarter. Further, the term of lease
renewals increased to 63 months from 59 months in the comparable
quarter last year.
The North American fleet totaled approximately 109,955 cars
compared with 109,162 cars at the end of third-quarter 2012.
Fleet utilization increased to 98.5% from 98.2% in the year-ago
Adjusted profit from the
segment was $19.7 million compared with $20 million in the
year-ago quarter. Adjusted income excluded the impact of $15.1
million and $2.1 million related to both positive and negative
pre-tax adjustment and other items for third-quarter 2013 and
2012, respectively. The European wholly owned tank car fleet
totaled approximately 22,041 compared with 21,314 in the year-ago
quarter. Fleet utilization was 96.2% versus 96.6% in the
was $17.7 million compared with $15 million in the year-ago
quarter. The segment currently comprises approximately $852
million of owned assets and third-party managed portfolios of
approximately $128 million.
Profit from the
American Steamship Company
(ASC) segment was $12.9 million compared with $13.2 million in
the year-ago quarter.
The company exited the third quarter with cash and cash
equivalents of $150.7 million compared with $234.2 million in
GATX maintain its full-year 2013 earnings in the range of
$3.20-$3.30 per share.
We expect market fundamentals to continue to improve in 2013,
supporting higher lease rates, carloads, increased asset
utilization and remarketing opportunities. The company remains
focused on expanding its asset base to enhance its long-term
performance. Further, the tie-up with Rolls Royce is also
generating strong results, strengthening GATX' competitive
The company currently retains a Zacks #3 (Hold).
OTHER STOCKS TO CONSIDER
Other stocks worth considering within the sector are
Trinity Industries Inc.
The Greenbrier Companies, Inc.
). AMERCO has a Zacks Rank #1 (Strong Buy) while the other
two stocks have a Zacks Rank #2 (Buy).