GATX reported 2011 third quarter net income of $32.9 million compared to 2010 third quarter net income of $21.1 million. GATX said third-quarter 2011 results included a net positive impact of negative after-tax fair-value adjustments on interest rate swaps at GATX’s European rail affiliate, AAE Cargo, of $2.8 million and a tax benefit of $4.1 million from a reduction in statutory tax rates in the United Kingdom.

The company said its rail segment profit was $63.0 million in the third quarter compared to $32.7 million in third quarter 2010. Year-to-date 2011 segment profit was $171.3 million compared to $111.4 million in the same period last year. GATX said the improvement in rail’s segment profit is primarily driven by higher lease income due to more cars on lease, stronger asset remarketing activity and lower switching and storage costs as a result of higher fleet utilization.

At September 30, 2011, rail’s North American fleet totaled approximately 109,000 cars. Fleet utilization was 98.2%, consistent with the second quarter and up compared to 96.8% at the end of third quarter 2010. Renewal lease rates in the Lease Price Index (LPI) increased 9.6% over the expiring rates, compared to a 4.4% increase in the second quarter 2011 and a decline of 15.7% in the third quarter 2010. The average lease renewal term for cars in the LPI in the third quarter was 49 months, up from 41 months in the second quarter and 36 months in the third quarter of 2010.

Rail’s European wholly-owned tank car fleet totaled approximately 21,000 cars and utilization was 96.0% at the end of the third quarter, compared to 95.7% at the end of the second quarter and 95.3% at the end of third quarter 2010.

Brian A. Kenney, president and chief executive officer of GATX, said, “Operating conditions remain favorable in the North American rail market. Our fleet utilization at the end of the third quarter was 98.2%, and lease rates continue to strengthen. The Lease Price Index was a positive 9.6% as we saw high demand for many car types. Also, during the quarter we began to take delivery of new railcars that are a part of our five-year supply agreement announced earlier this year.”