GATX reported fourth-quarter 2013 net income of $53.3 million compared to net income of $29.7 million in the fourth quarter of 2012. Net income for the full-year 2013 was $169.3 million compared to net income of $137.3 million in the prior year.

The company’s rail segment, which encompasses Rail North America and Rail International, reported combined revenues and profit for the fourth quarter and full year 2013 were $262.9 million and $1,006.1 million, respectively up from $241.5 million and $933 million in the same year-earlier periods. Commenting on the improvement in quarterly and annual segment profit, GATX said performance was driven by higher lease rates and increased asset remarketing income.

Brian A. Kenney, president and chief executive officer of GATX, said, “During 2013, we capitalized on the exceptionally strong demand for tank cars in North America by locking in historically high lease rates for very long terms. This strategy caused a positive 34.5% renewal rate change in GATX’s Lease Price Index (LPI) for full-year 2013, while the average renewal term for cars in the LPI was 62 months. We achieved these results despite the challenging freight car market, as weakness in demand persisted for certain freight car types such as coal.

“Fleet utilization was approximately 98% throughout the year, and our renewal success rate was just over 80%. We grew the North American fleet with railcar investment of over $500 million through select opportunities to purchase railcars in addition to investments made under our existing supply agreement. We also optimized our fleet by selling targeted car types, and in the process generated more than $50 million in asset remarketing income. As we expected entering 2013, compliance-related maintenance activity increased in North America, driving maintenance expense higher by 13% from 2012.

“GATX Rail Europe (GRE) performed well in 2013’s weaker European railcar leasing market by scrapping older, less efficient tank cars and replacing them with newly built cars, which resulted in reduced maintenance expense as well as increased utilization of 96.8% at year end. GRE’s 2013 investment volume exceeded $160 million.”

To read the GATX news release click here.