GATX reported Q1/15 net income of $62.2 million compared to net income of $42.1 million in Q1/14.

GATX said its Rail North America reported segment profit of $105.8 million in Q1/15, compared to $75.0 million in Q1/14. The improvement in segment profit was driven by increased asset remarketing income, higher lease rates and the positive contribution from the boxcar fleet that was acquired at the end of Q1/14.

At March 31, 2015, Rail North America’s wholly owned fleet comprised approximately 126,000 railcars, including nearly 19,000 boxcars. The following fleet statistics and performance discussion exclude the boxcar fleet.

Fleet utilization was 99.3% at the end of the first quarter, compared to 99.2% at the end of the prior quarter and 98.5% at the end of the first quarter of 2014. During the first quarter of 2015, 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 43.2% over the weighted-average expiring lease rate. This compares to a 39.2% increase in the prior quarter and a 33.9% increase in the first quarter of 2014. The average lease renewal term for cars included in the LPI during the first quarter was 59 months, compared to 67 months in the prior quarter and 62 months in the first quarter of 2014.

Rail North America investment volume during the first quarter was nearly $130 million. Asset remarketing income was $36.1 million, as the secondary market continues to be very active.

Brian A. Kenney, president and chief executive officer of GATX, said, Rail North America’s outstanding performance continued in the first quarter. The renewal rate change of GATX’s LPI was a positive 43.2%, and the average renewal term was 59 months. Fleet utilization exceeded 99% at the end of the quarter, and our renewal success rate was nearly 85%. These favorable results were driven by continued strong demand for most railcar types in our fleet.

Kenney added, “Consistent with our comments at the beginning of 2015, our existing fleet continues to experience high demand, but new railcar order activity has slowed as our customers assess the impact of low crude-oil prices and impending tank car regulations on their business. As these issues clarify in 2015, we can provide better insight into the medium-term effects on our business.”

To view the full GATX news release, click here.