GATX reported Q3/13 net income of $53.8 million compared to net income of $53.8 million in the third quarter of 2012. Net income for the first nine months of 2013 was $116.0 million compared to $107.6 million in the prior year period. The 2013 and 2012 year-to-date results include benefits from tax adjustments and other items of $4.5 million and $0.7 million, respectively.

GATX noted that Rail investment volume – encompassing Rail North America and Rail International — in Q3/13 and YTD was $174.5 million and $480.8 million, respectively up 41.5% from $123.3 million and 8.3% from $443.9 million for the same periods in 2012. The company reported that its Rail North America and Rail International railcar fleet size at 9/30/13 was 110,000 and 22,000 units, respectively.

Rail North America reported segment profit of $57.9 million in the third quarter of 2013, compared to $45.6 million in the third quarter of 2012. Year to date, Rail North America reported segment profit of $156.4 million, compared to $149.5 million in the same period of 2012. The increase in quarterly and year-to-date segment profit was driven by higher lease rates and improved asset remarketing results, partially offset by an expected increase in maintenance expense related to regulatory compliance work.

At September 30, 2013, Rail North America’s wholly-owned fleet totaled approximately 110,000 cars, and fleet utilization was 98.5% compared to 98.2% at the end of the second quarter and 98.2% at September 30, 2012. During the third quarter of 2013, GATX’s Lease Price Index, a weighted average lease renewal rate for a group of railcars representative of Rail North America’s fleet, increased 34.3% over the weighted average expiring lease rate. This compares to a 36.0% increase in the prior quarter and a 26.4% increase in the third quarter 2012. The average lease renewal term for cars included in the LPI during the third quarter was 63 months, compared to 58 months in the second quarter and 59 months in the third quarter of 2012.

Rail North America’s investment volume was $130.8 million during the third quarter, and included the purchase of new tank and freight cars.

Rail International reported segment profit of $34.8 million in the third quarter of 2013, compared to $17.9 million in the third quarter of 2012. The 2013 and 2012 third quarter results include the pre-tax benefit from Other Items of $15.1 million and the negative pre-tax impact from Other Items of $2.1 million, respectively. Excluding the impact from Other Items, third quarter segment profit was comparable to the prior year period.

Rail International reported segment profit of $77.8 million year-to-date 2013, compared to $22.2 million in 2012. The 2013 and 2012 results include the pre-tax benefit from Other Items of $17.0 million and the negative pre-tax impact from Other Items of $20.9 million, respectively. The increase in year-to-date segment profit was driven by increased lease income, scrapping gains, and fewer maintenance events, partially offset by higher depreciation expense at GRE.

GRE’s fleet totaled approximately 22,000 railcars as of September 30, 2013, and utilization was 96.3%, compared to 95.8% at the end of the second quarter and 96.6% at September 30, 2012.

During the third quarter, Rail International’s investment volume was $43.7 million, primarily for new tank cars in Europe.

Brian A. Kenney, president and chief executive officer of GATX, said, “The demand for tank cars in North America remains strong. During the third quarter, the renewal rate change of GATX’s Lease Price Index was a positive 34.3% and the average renewal term for cars in the LPI was 63 months. Freight car markets are uneven, although demand for grain and coal cars improved modestly from very low levels.

“Within Rail International, we sold our 37.5% interest in AAE Cargo AG during the quarter. GATX Rail Europe, our wholly-owned tank car leasing business, is now better positioned to pursue opportunities in the European freight car market. GRE continues to have solid performance as we are investing in new tank cars and aggressively scrapping older equipment. Fleet utilization was 96.3% at the end of the third quarter.”

To read the GATX news release click here.