GATX reported Q2/15 net income of $45.4 million, representing a drastic fall from Q1/15 ($62.2 million) and Q2/14 ($53.1 million).

In addition, the earnings report showed a significant miss on analyst estimates, as GATX’s net income was just $1.03 per diluted share, far below the $1.27 estimated by Zacks.

Along with the dip in net income, GATX took a hit to its Rail North America segment, which reported a segment profit of $84.9 million in the Q2/15 of 2015, compared to $91.7 million in the Q2/14 of 2014. GATX said that the primary cause for the decrease was timing of remarketing income.

Fortunately, year to date, Rail North America reported segment profit of $190.7 million, compared to $166.7 million in the same period last year. The improvement in year-to-date segment profit was driven by increased lease revenue from higher lease rates as well as a six-month contribution from the acquired boxcar fleet compared to three months in the prior year.

On June 30, 2015, Rail North America’s wholly owned fleet was approximately 125,600 cars, including more than 18,600 boxcars, with 99.3% of the fleet utilized, which remains even with the mark at the end of Q1/15 and was a slight bump from the number at the end of Q2/14 (98.6%). GATX’s Lease Price Index, a weighted average lease renewal rate for a group of railcars representative of Rail North America’s fleet, increased 36.3% over the weighted average expiring lease rate during the quarter as well. The LPI was 43.2 % in Q1/15 and 36.0% in Q2/14.

Investment volume for Rail North America was $135.2 million in Q2/15, which was down from the $148.5 million recorded during the same time frame from a year ago.

Despite the overall downward trend, GATX president and CEO Brain A. Kenney remains optimistic about the rest of the year, primarily due to the utilization rate and strong demand for railcars.

“We continue to see strong demand for most railcar types in our fleet. Utilization was 99.3% at the end of the quarter, excluding our boxcar fleet,“ Kenney said. “The renewal rate change of our Lease Price Index was a positive 36.3% and our renewal success rate remained very high at 84%. “

Kenney also noted regulatory changes as a still developing issue in the industry, but one GATAX should survive.

“The effects of the recently enacted flammable tank car regulatory changes on the industry will take some time to fully develop,” Kenney said. “However, with fewer than 1,400 tank cars requiring modification or retirement by 2023, we are well positioned to address these changes. Providing our customers with the safest railcars and service continues to be our highest priority, and we will diligently work with customers to comply with the new rule.”