GATX reported Q2/14 net income of $53.1 million compared to net income of $35.1 million in Q2/13. Net income for the first six months of 2014 was $95.2 million compared to $62.2 million in the prior year period.

Brian A. Kenney, president and chief executive officer of GATX, said, “Rail North America continues to see strong demand for tank cars and improving, broad-based demand for many freight car types, particularly covered hoppers. Utilization was 98.6% at the end of the quarter, excluding our boxcar fleet. The renewal rate change of our Lease Price Index was a positive 36.0% and the average renewal term for cars in the Lease Price Index was 67 months. Our renewal success rate also remained high, at nearly 85% during the second quarter.

“We made excellent progress integrating the recently acquired boxcar fleet. Utilization on this fleet increased from 78.8% at acquisition to 90.7% by the end of the second quarter, primarily by placing idle cars on term lease and scrapping and selling targeted cars.

“Rail International’s performance is in line with our expectations. The demand for tank cars in Europe is stable, and GATX Rail Europe continues to take delivery of new cars to meet customer needs.”

Rail North America reported segment profit of $91.7 million in the second quarter of 2014, compared to $48.2 million in the second quarter of 2013. Year to date, Rail North America reported segment profit of $166.7 million, compared to $98.5 million in the same period of 2013. The improvement in quarterly and year-to-date segment profit was driven by increased lease revenue from higher lease rates and the timing of asset remarketing income.

At June 30, 2014, Rail North America’s wholly owned fleet was approximately 126,000 cars, including approximately 19,300 boxcars. The following fleet statistics exclude the boxcar fleet.

Fleet utilization was 98.6% at the end of the second quarter, compared to 98.5% at the end of the prior quarter and 98.2% at the end of the second quarter of 2013. During the second quarter of 2014, the GATX Lease Price Index (LPI), a weighted average lease renewal rate for a group of railcars representative of Rail North America’s fleet, increased 36.0% over the weighted average expiring lease rate. This compares to a 33.9% increase in the prior quarter and a 36.0% increase in the second quarter of 2013. The average lease renewal term for cars included in the LPI during the second quarter was 67 months, compared to 62 months in the prior quarter and 58 months in the second quarter of 2013.

Upon acquisition, GATX’s boxcar fleet consisted of approximately 20,100 cars and utilization was 78.8%. At the end of the second quarter, the boxcar fleet was approximately 19,300 cars, and utilization improved to 90.7%.

To read the entire GATX news release, click here.