), a leader in leasing transportation assets, reported adjusted
first quarter 2013 earnings of 60 cents per share, missing of the
Zacks Consensus Estimate of 68 cents. Earnings showed 13%
deterioration from 69 cents reported in the year-ago quarter.
Adjusted earnings for the first quarter excluded the unfavorable
impacts of benefits from tax adjustments and other items of $1.3
million (3 cents per share).
Revenues increased 6.2% year over year to $272.3 million but
missed the Zacks Consensus Estimate of $285 million.
Profits decreased to $80.7 million from $81.6 million in the
year-ago quarter. Total operating expenses (including ownership
cost, and other costs and expenses) increased to $220.8 million
from $203.3 million in the year-ago quarter.
Profit from the Rail North America segment increased to $50.3
million in the reported quarter from $50.7 million in the
GATX' Lease Price Index (LPI) improved substantially to 30.8%
from 19.2% in the year-ago quarter. Further, the term of lease
renewals increased to 65 months from 55 months in the comparable
quarter last year.
The North American fleet totaled approximately 109,637 cars
compared with 109,116 cars at the end of first quarter 2012.
Fleet utilization decreased to 97.8% from 98.5% in the year-ago
Adjusted profit from the Rail International segment was $20
million, up from $10.4 million in the year-ago quarter. Adjusted
income excluded the impact of $1.4 million related to pre-tax
adjustment and other items. The European wholly owned tank car
fleet totaled approximately 21,896 compared to 21,064 in the
year-ago quarter. Fleet utilization was 95.5% versus 96.7% in the
Profit from Portfolio Management was $12.5 million compared with
$22.0 million in the year-ago quarter. The segment currently
comprises approximately $766.3 million of owned assets (including
on and off balance sheet assets) and third-party managed
portfolios of approximately $140.7 million.
Profit from the American Steamship Company (ASC) segment dipped
0.8% year over year to $2.1 million in the first quarter. The
decline was due to lower operations in the winter season.
The company exited first quarter, with cash and cash equivalents
of $321.1 million compared with $234.2 million in 2011.
GATX maintains its full-year 2013 earnings estimates at $3.10 to
$3.20 per diluted share.
Other stocks worth considering within the sector are
American Railcar Industries, Inc.
FLY Leasing Ltd.
The Greenbrier Companies, Inc.
). All have a Zacks Rank #2 (Buy) rating.
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 joint venture with Rolls Royce is
also producing strong results for the company, uplifting its
competitive position against rivals.
The company currently retains a Zacks #3 (Hold).
AMER RAILCAR (ARII): Free Stock Analysis
FLY LEASING LTD (FLY): Free Stock Analysis
GREENBRIER COS (GBX): Free Stock Analysis
GATX CORP (GMT): Free Stock Analysis Report
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