GATX Corporation reported 2009 third quarter net income of $19.6 million compared to last year's third quarter net income of $73.9 million. Net income for the first nine months of 2009 was $59.9 million compared to $165.9 million in the prior year period.

The company said lease rates in both its rail and marine division remain below average and continue to decline.

"Our markets remain extremely challenging and competitive," said Brian A. Kenney, president and chief executive officer of GATX. "We maintained our rail fleet's utilization at almost 96% in the third quarter. However, lease rates continued to decline. While we have shortened the term of lease renewals in 2009 in anticipation of an eventual market recovery, the current pressure on rates will have a dampening effect on lease income through 2010.

The company said its rail segment profit was $47.8 million in the third quarter of 2009, compared to third quarter 2008 segment profit of $106.3 million. At September 30, 2009, Rail's North American fleet totaled approximately 111,000 cars. Fleet utilization was 95.9% compared to 96.0% at the end of the second quarter and 97.9% at year end. Renewal lease rates in the Lease Price Index (LPI) declined 8.5% over the expiring rate, compared to a 9.8% decline in the second quarter 2009 and a decline of 0.3% in the third quarter 2008.

The average renewal term in the third quarter was 39 months, compared to 36 months in the second quarter 2009 and 57 months in the third quarter of 2008. Rail's European wholly-owned tank car fleet totaled approximately 20,000 cars and utilization was 94.7%, compared to 95.6% at the end of the second quarter and 97.1% at year end.

Commenting on the performance of its marine division, Kenney said, "Charter rates at the marine joint ventures in Specialty remain well below rates in recent years, with little change between the second and third quarters of 2009. At American Steamship Company (ASC), vessel demand has moved up slightly as steel manufacturers recently restarted a small number of blast furnaces. However, ASC continues to operate in a difficult environment with dramatically lower demand for iron ore shipments than in previous years."

Click here to access the full earnings release at GATX.com.