* GATX Board declares quarterly common dividend of $.32 per share
CHICAGO, July 29 /PRNewswire-FirstCall/ -- GATX Corporation (NYSE: GMT)
today announced its 2003 second quarter results. For the 2003 second quarter,
GATX reported net income of $24.8 million or $.50 per diluted share compared
to net income of $20.4 million or $.42 per diluted share in the prior year
period. The 2003 second quarter results benefited from two significant items
of note: $5.1 million of after-tax income, or $.09 per diluted share, related
to the sale of a fully-reserved Air Canada unsecured note, and $2.7 million of
after-tax income, or $.05 per diluted share, from an insurance recovery on
previously expensed litigation-related charges.
For the six-month period ended June 30, 2003, GATX reported net income of
$26.6 million or $.54 per diluted share. In the first six months of 2003, the
net effect of air-related impairments and/or charges, partially offset by the
aforementioned insurance recovery, resulted in a negative impact on income of
$4.4 million after-tax, or $.09 per diluted share. For the six-month period
ended June 30, 2002, net income was $10.6 million or $.22 per diluted share.
In the first six months of 2002, a gain on the sale of GATX Terminals-related
assets and a goodwill impairment charge related to the adoption of SFAS 142
resulted in a negative impact on income of $28.7 million after-tax, or
$.59 per diluted share.
Ronald H. Zech, chairman and president of GATX, stated, "Although our core
markets remain challenging, we experienced more stable operating conditions in
the second quarter. In Rail, certain indicators are improving. Fleet
utilization and the pace of lease renewal and assignment activity are higher
and a cause for optimism. This is tempered by continued weakness in lease
renewal rates, and our North American revenue remains pressured.
"The air industry is showing signs of stabilizing, and our fleet continues
to maintain high utilization levels. Volatility in the industry continues,
however, and we are managing our fleet on the expectation that market
conditions will remain uncertain at least through the balance of this year.
"The long-anticipated rebound in information technology spending has yet
to take hold. However, our IT leasing volumes have been stable in recent
quarters, and we expect to build volume from this base level in the quarters
ahead.
"Overall, we continue to feel better about the underlying fundamentals in
our markets, yet cautious regarding potential volatility in air and the
general strength of this economic recovery. At the beginning of the year we
indicated that we expected 2003 earnings to be in the range of $1.30 per
diluted share absent a material change in operating conditions or air-related
charges. Consistent with these expectations, and incorporating $.14 per
diluted share of air-related impairments and/or charges incurred in the first
half of 2003, we expect 2003 earnings to be in the range of $1.16 per diluted
share, absent any further air-related impairments and/or charges.
Mr. Zech concluded, "We continue to manage our business for the long-term:
investing in quality assets, addressing the controllable variables in our
business, and managing our balance sheet appropriately. We believe this has
been a sound strategy during the recent economic downturn, and will continue
to serve us well as our end markets stabilize and move toward recovery."
DIVIDEND ANNOUNCEMENT
The board of directors of GATX Corporation today declared a quarterly
dividend of $.32 per common share, payable September 30, 2003, to shareholders
of record on September 15, 2003.
The board also declared a quarterly dividend of $.625 per share on the
$2.50 preferred stock, payable September 1, 2003, to shareholders of record on
August 15, 2003.
The common and preferred dividends declared today are unchanged from the
previous quarter.
GATX RAIL
GATX Rail reported net income of $12.9 million in the 2003 second quarter
compared to $12.2 million in the prior year period. For the six-month period,
2003 net income was $22.5 million compared to a net loss of $4.7 million in
the prior year. The 2002 six-month results included a $34.9 million after-tax
goodwill impairment charge related to the adoption of SFAS 142.
GATX Rail's North American fleet totals 105,000 cars and utilization of
this fleet was 93% at the end of the second quarter, up from 92% at the end of
the first quarter and 91% at the end of 2002. The increase in utilization
reflects a combination of an increase in the active car count and car
scrapping activity.
GATX Rail's North American maintenance expense is running higher in 2003,
both quarterly and year-to-date, than in the prior year periods. This is
related to an increase in the number of cars running through the maintenance
network due to increased customer activity and certain railroad mandated
repairs undertaken in 2003.
Railcar order backlogs at railcar manufacturers, an indicator of future
demand for new railcars, continued to climb during the second quarter. While
this is a positive long-term indicator, certain macroeconomic data that relate
to GATX Rail's business remained soft: North American manufacturing capacity
utilization, as reported by the Federal Reserve, was 74% at the end of June
2003, down from 75% at the end of the prior quarter and 76% at the end of the
prior year period; and industry-wide chemical shipments have increased a
nominal .5% in the first six months of 2003 versus the prior year period.
FINANCIAL SERVICES
Financial Services reported second quarter net income of $17.5 million
compared to net income of $15.1 million in the prior year period. The 2003
second quarter results include $5.1 million of after-tax income related to the
sale of the Air Canada unsecured note. The note, for which GATX had
previously taken a 100% loss reserve, was sold during the second quarter and a
portion of the original loss reserve was reversed. Additionally, the 2003
second quarter results included $2.7 million of after-tax income resulting
from an insurance recovery.
For the first six months of 2003, Financial Services reported net income
of $16.3 million compared to net income of $22.1 million in the prior year.
The 2003 year-to-date results include the $4.4 million negative impact from
the aforementioned items.
Regarding the air sector, an updated slide presentation outlining
portfolio data is available at http://www.gatx.com. Summarizing this presentation,
GATX Air's fleet remains highly utilized, and substantial progress has been
made on scheduled new deliveries and renewals. All six 2003 scheduled new
deliveries have been placed or assigned to customers. Also, of GATX Air's
original schedule of eight aircraft renewals in 2003, six have been renewed or
assigned to new customers. However, conditions in the industry remain
challenging for aircraft lessors, reflected in continued weakness in lease
rates and periodic restructurings.
Investment volume for the second quarter totaled $174 million compared to
$324 million in the prior year period. For the six-month period, 2003
investment volume totaled $375 million compared to $632 million in the prior
year period. The decline in 2003 investment volume primarily reflects lower
scheduled new aircraft deliveries in 2003, and the planned curtailment of new
investment in the specialty area.
Remarketing income, comprised of both gains on asset sales and residual
sharing fees, was $8.7 million in the 2003 second quarter compared to
$18.3 million in the prior year period. Remarketing activity in 2003 has
primarily been generated in the specialty and technology portfolios.
CREDIT STATISTICS
At the end of the 2003 second quarter, the allowance for losses was 6.6%
of reservable assets, flat with the prior year period. As noted in past
commentary, GATX is comfortable with an allowance in the range of 6.0%-6.5% of
reservable assets in this environment.
Net charge-offs and impairments totaled $31.9 million during the 2003
second quarter, or 1.8% of average total assets on an annualized basis. The
2003 second quarter figure includes a charge-off of the unrecovered portion of
the Air Canada unsecured note, plus approximately $8 million of asset
impairments in the specialty portfolio and $2 million of asset impairments in
the air portfolio. Net charge-offs and impairments in the 2002 second quarter
totaled $19.1 million, or 1.1% of average total assets.
Non-performing leases and loans at the end of the 2003 second quarter
totaled $144.2 million or 5.2% of Financial Services' investments compared to
$111.4 million (3.8%) in the prior year period and $163.5 million (5.7%) in
the 2003 first quarter. The decrease from the 2003 first quarter to second
quarter primarily reflects the removal of the Air Canada note from
non-performing as it was sold in the second quarter.
COMPANY DESCRIPTION
GATX Corporation (NYSE: GMT) is a specialized finance and leasing company
combining asset knowledge and services, structuring expertise, partnering and
risk capital to provide business solutions to customers and partners
worldwide. GATX specializes in railcar and locomotive leasing, aircraft
operating leasing, and information technology leasing.
TELECONFERENCE INFORMATION
GATX Corporation will host a teleconference to discuss 2003 second quarter
results. Teleconference details are as follows:
Tuesday, July 29th
11:00 AM Eastern Time
Domestic Dial-In: 1-800-706-6082
International Dial-In: 1-706-634-7421
Replay: 1-800-642-1687 / Access Code: 1649473
Call in details and real-time audio access are available at http://www.gatx.com.
Please access the call 15 minutes prior to the start time. Following the
call, a replay will be available on the same site.
UPDATE ON AIR PORTFOLIO
GATX Corporation has updated its Air portfolio presentation, and the
slides are currently available at http://www.gatx.com or by calling the GATX Investor
Relations Department.
FORWARD-LOOKING STATEMENTS
Certain statements within this document may constitute forward-looking
statements made pursuant to the safe harbor provision of the Private
Securities Litigation Reform Act of 1995. These statements are identified by
words such as "anticipate," "believe," "estimate," "expects," "intend,"
"predict," or "project" and similar expressions. This information may involve
risks and uncertainties that could cause actual results to differ materially
from the forward-looking statements. Although the Company believes that the
expectations reflected in such forward-looking statements are based on
reasonable assumptions, such statements are subject to risks and uncertainties
that could cause actual results to differ materially from those projected.
Risks and uncertainties include, but are not limited to, general economic
conditions; aircraft and railcar lease rate and utilization levels; conditions
in the capital markets and the potential for a downgrade in our credit rating,
either of which could have an effect on our borrowing costs or our ability to
access the markets for commercial paper or secured and unsecured debt;
dynamics affecting customers within the chemical, petroleum and food
industries; regulatory rulings that may impact the economic value of assets;
competitors in the rail and air markets who may have access to capital at
lower costs than GATX; additional potential write-downs and/or provisions
within GATX's portfolio; impaired asset charges; and general market conditions
in the rail, air, technology, venture, and other large-ticket industries.
Investor, corporate, financial, historical financial, photographic and
news release information may be found at http://www.gatx.com.
GATX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In Millions, Except Per Share Data)
Three Months Ended Six Months Ended
June 30 June 30
2003 2002 2003 2002
Gross Income
Lease income $238.7 $260.9 $478.4 $516.5
Marine operating revenue 25.5 22.8 29.7 24.7
Interest income 12.2 13.2 21.8 28.6
Asset remarketing income 13.2 18.5 23.5 29.8
Gain on sale of securities .1 .6 .5 1.1
Fees 4.3 3.8 10.9 9.4
Other 19.9 11.9 36.6 23.3
Revenues 313.9 331.7 601.4 633.4
Gain on extinguishment
of debt -- .6 .7 14.5
Share of affiliates'
earnings 22.4 21.8 40.9 39.8
Total Gross Income 336.3 354.1 643.0 687.7
Ownership Costs
Depreciation 77.5 87.9 156.5 176.5
Interest, net 50.3 56.6 104.4 109.8
Operating lease expense 46.1 46.5 92.2 88.0
Total Ownership Costs 173.9 191.0 353.1 374.3
Other Costs and Expenses
Maintenance expense 41.7 37.1 82.0 74.9
Marine operating expenses 20.9 17.7 24.1 19.6
Other operating expenses 8.3 8.2 20.1 17.7
Selling, general and
administrative 49.9 52.9 94.0 101.5
(Reversal) provision for
possible losses (10.3) 9.2 8.4 26.9
Asset impairment charges 12.5 3.8 16.1 6.4
Fair value adjustments
for derivatives .3 2.4 2.4 3.7
Total Other Costs and
Expenses 123.3 131.3 247.1 250.7
Income from Continuing
Operations before
Income Taxes and
Cumulative Effect
of Accounting Change 39.1 31.8 42.8 62.7
Income Taxes 14.3 11.4 16.2 23.4
Income from Continuing
Operations before
Cumulative Effect of
Accounting Change 24.8 20.4 26.6 39.3
Discontinued Operations
Gain on sale of portion
of segment, net of taxes -- -- -- 6.2
Total Discontinued
Operations -- -- -- 6.2
Income before Cumulative
Effect of Accounting
Change 24.8 20.4 26.6 45.5
Cumulative Effect of
Accounting Change -- -- -- (34.9)
Net Income $24.8 $20.4 $26.6 $10.6
GATX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In Millions, Except Per Share Data)
(Continued)
Three Months Ended Six Months Ended
June 30 June 30
2003 2002 2003 2002
Per Share Data
Basic:
Income from continuing
operations before cumulative $.51 $.42 $.54 $.81
effect of accounting change
Income from discontinued
operations -- -- -- .13
Cumulative effect of accounting
change -- -- -- (.72)
Total $.51 $.42 $.54 $.22
Average number of common
shares (in thousands) 49,075 48,866 49,068 48,825
Diluted:
Income from continuing
operations before cumulative $.50 $.42 $.54 $.81
effect of accounting change
Income from discontinued
operations -- -- -- .13
Cumulative effect of accounting
change -- -- -- (.72)
Total $.50 $.42 $.54 $.22
Average number of common shares
and common share equivalents
(in thousands) (a) 54,320 49,258 49,180 49,196
(a) Shares underlying the convertible securities issued in first quarter
of 2002 were included in the calculation of diluted earnings per share
for the second quarter of 2003 because of dilutive effects.
GATX CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In Millions)
June 30 December 31
2003 2002
Assets
Cash and Cash Equivalents $226.8 $231.1
Restricted Cash 109.7 140.9
Receivables
Rent and other receivables 91.3 97.8
Finance leases 624.5 713.0
Loans 335.1 434.2
Less - allowance for possible losses (69.3) (82.2)
981.6 1,162.8
Operating Lease Assets, Facilities and Other
Railcars and service facilities 3,178.7 3,076.9
Operating lease investments and other 2,370.8 2,250.1
Less - allowance for depreciation (2,029.8) (2,008.1)
3,519.7 3,318.9
Progress payments for aircraft and other
equipment 57.8 140.9
3,577.5 3,459.8
Investments in Affiliated Companies 827.2 850.9
Recoverable Income Taxes 61.5 129.8
Goodwill, Net 62.5 62.5
Other Investments 86.0 96.1
Other Assets 240.1 294.4
$6,172.9 $6,428.3
Liabilities and Shareholders' Equity
Accounts Payable and Accrued Expenses $351.2 $399.5
Debt
Short-term 22.2 13.7
Long-term:
Recourse 3,372.8 3,487.9
Nonrecourse 481.8 594.6
Capital lease obligations 128.9 143.7
4,005.7 4,239.9
Deferred Income Taxes 674.7 640.0
Other Liabilities 333.3 347.3
Total Liabilities 5,364.9 5,626.7
Total Shareholders' Equity 808.0 801.6
$6,172.9 $6,428.3
GATX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
(In Millions)
Three Months Ended Six Months Ended
June 30 June 30
2003 2002 2003 2002
Operating Activities
Income from continuing
operations, including
accounting change $24.8 $20.4 $26.6 $4.4
Adjustments to reconcile
income from continuing
operations to net cash
provided by continuing
operations:
Realized gains on
remarketing of leased
equipment (11.9) (17.6) (20.8) (27.4)
Gain on sales of
securities (.1) (.6) (.5) (1.1)
Depreciation 81.4 92.1 164.5 185.0
(Reversal) provision
for possible losses (10.3) 9.2 8.4 26.9
Asset impairment
charges 12.5 3.8 16.1 6.4
Deferred income taxes 32.8 25.8 56.8 38.1
Gain on extinguishment
of debt -- (.6) (.7) (14.5)
Share of affiliates'
earnings, net of
dividends (17.0) (10.5) (31.0) (24.0)
Cumulative effect of
accounting change -- -- -- 34.9
Other, including
working capital 107.8 14.3 56.9 (29.9)
Net cash provided by
continuing operations 220.0 136.3 276.3 198.8
Investing Activities
Additions to equipment on
lease, net of nonrecourse
financing for leveraged
leases, operating lease
assets and facilities (173.2) (250.0) (339.1) (513.6)
Loans extended (8.7) (43.5) (37.7) (55.3)
Investments in affiliated
companies (29.3) (12.3) (44.2) (26.6)
Progress payments (5.4) (28.4) (22.6) (58.9)
Other investments (1.2) (15.2) (24.2) (16.6)
Portfolio investments and
capital additions (217.8) (349.4) (467.8) (671.0)
Portfolio proceeds 162.5 210.7 384.8 449.9
Leveraged lease
disposition, net (102.8) -- (102.8) --
Proceeds from other asset
sales 5.4 1.8 14.8 4.8
Net cash used in investing
activities of continuing
operations (152.7) (136.9) (171.0) (216.3)
Financing Activities
Net proceeds from issuance
of long-term debt 89.8 584.2 333.0 1,160.3
Repayment of long-term debt (137.5) (353.2) (436.7) (671.4)
Net increase (decrease) in
short-term debt 7.1 (43.7) 8.5 (286.7)
Net repayments of capital lease
obligations (3.4) (2.9) (14.8) (14.9)
Issuance of common stock and
other .2 2.8 .6 4.3
Cash dividends (15.7) (15.6) (31.4) (31.2)
Net cash (used in) provided
by financing activities of
continuing operations (59.5) 171.6 (140.8) 160.4
Net Transfers from (to)
Discontinued Operations -- 1.5 -- (12.1)
Net Increase (Decrease) in
Cash and Cash Equivalents from
Continuing Operations 7.8 172.5 (35.5) 130.8
Proceeds from Sale of a Portion
of Segment -- -- -- 3.2
Net Increase (Decrease) in Cash
and Cash Equivalents $7.8 $172.5 $(35.5) $134.0
GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Three Months Ended June 30, 2003
(In Millions)
GATX Financial Corporate GATX
Rail Services and Other Consolidated
Gross Income
Lease income $157.7 $81.0 $-- $ 238.7
Marine operating revenue -- 25.5 -- 25.5
Interest income -- 12.2 -- 12.2
Asset remarketing income 4.5 8.7 -- 13.2
Gain on sale of securities -- .1 -- .1
Fees .9 3.4 -- 4.3
Other 11.6 8.1 .2 19.9
Revenues 174.7 139.0 .2 313.9
Gain on extinguishments
of debt -- -- -- --
Share of affiliates'
earnings 2.6 19.8 -- 22.4
Total Gross Income 177.3 158.8 .2 336.3
Ownership Costs
Depreciation 28.9 48.6 -- 77.5
Interest, net 16.9 29.4 4.0 50.3
Operating lease expense 43.7 2.4 -- 46.1
Total Ownership Costs 89.5 80.4 4.0 173.9
Other Costs and Expenses
Maintenance expense 40.8 .9 -- 41.7
Marine operating expenses -- 20.9 -- 20.9
Other operating expenses 7.3 1.0 -- 8.3
Selling, general and
administrative 19.2 25.3 5.4 49.9
Provision (reversal) for
possible losses .2 (10.5) -- (10.3)
Asset impairment charges -- 12.5 -- 12.5
Fair value adjustments for
derivatives .1 .2 -- .3
Total Other Costs and
Expenses 67.6 50.3 5.4 123.3
Income (Loss) before
Income Taxes 20.2 28.1 (9.2) 39.1
Income Tax Provision
(Benefit) 7.3 10.6 (3.6) 14.3
Net Income (Loss) $12.9 $17.5 $(5.6) $24.8
GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Three Months Ended June 30, 2002
(In Millions)
GATX Financial Corporate GATX
Rail Services and Other Consolidated
Gross Income
Lease income $ 155.0 $ 105.9 $-- $260.9
Marine operating revenue -- 22.8 -- 22.8
Interest income -- 13.2 -- 13.2
Asset remarketing income .2 18.3 -- 18.5
Gain on sale of securities -- .6 -- .6
Fees .5 3.3 -- 3.8
Other 8.0 4.0 (.1) 11.9
Revenues 163.7 168.1 (.1) 331.7
Gain on extinguishment
of debt -- .6 -- .6
Share of affiliates'
earnings 2.3 19.5 -- 21.8
Total Gross Income 166.0 188.2 (.1) 354.1
Ownership Costs
Depreciation 26.3 61.6 -- 87.9
Interest, net 15.0 37.1 4.5 56.6
Operating lease expense 43.2 3.3 -- 46.5
Total Ownership Costs 84.5 102.0 4.5 191.0
Other Costs and Expenses
Maintenance expense 36.9 .2 -- 37.1
Marine operating expenses -- 17.7 -- 17.7
Other operating expenses 7.3 .9 -- 8.2
Selling, general and
administrative 19.1 27.9 5.9 52.9
Provision for possible
losses .3 8.9 -- 9.2
Asset impairment charges -- 3.8 -- 3.8
Fair value adjustments for
derivatives (.1) 2.5 -- 2.4
Total Other Costs and
Expenses 63.5 61.9 5.9 131.3
Income (Loss) before
Income Taxes 18.0 24.3 (10.5) 31.8
Income Tax Provision
(Benefit) 5.8 9.2 (3.6) 11.4
Net Income (Loss) $12.2 $15.1 $(6.9) $20.4
GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Six Months Ended June 30, 2003
(In Millions)
GATX Financial Corporate GATX
Rail Services and Other Consolidated
Gross Income
Lease income $ 315.7 $ 162.7 $-- $ 478.4
Marine operating revenue -- 29.7 -- 29.7
Interest income -- 21.8 -- 21.8
Asset remarketing income 4.6 18.9 -- 23.5
Gain on sale of securities -- .5 -- .5
Fees 1.8 9.1 -- 10.9
Other 23.5 13.3 (.2) 36.6
Revenues 345.6 256.0 (.2) 601.4
Gain on extinguishment
of debt -- .7 -- .7
Share of affiliates'
earnings 4.7 36.2 -- 40.9
Total Gross Income 350.3 292.9 (.2) 643.0
Ownership Costs
Depreciation 58.0 98.5 -- 156.5
Interest, net 33.9 61.8 8.7 104.4
Operating lease expense 87.5 4.7 -- 92.2
Total Ownership Costs 179.4 165.0 8.7 353.1
Other Costs and Expenses
Maintenance expense 80.2 1.8 -- 82.0
Marine operating expenses -- 24.1 -- 24.1
Other operating expenses 18.0 2.1 -- 20.1
Selling, general and
administrative 37.5 46.7 9.8 94.0
(Reversal) provision for
possible losses (.2) 8.6 -- 8.4
Asset impairment charges -- 16.1 -- 16.1
Fair value adjustments for
derivatives .1 2.3 -- 2.4
Total Other Costs and
Expenses 135.6 101.7 9.8 247.1
Income (Loss) before
Income Taxes 35.3 26.2 (18.7) 42.8
Income Tax Provision
(Benefit) 12.8 9.9 (6.5) 16.2
Net Income (Loss) $22.5 $16.3 $ (12.2) $26.6
GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Six Months Ended June 30, 2002
(In Millions)
GATX Financial Corporate Discontinue GATX
Rail Services and Other Operations Consolidated
Gross Income
Lease income $311.9 $204.6 $ -- $ -- $516.5
Marine operating
revenue -- 24.7 -- -- 24.7
Interest income -- 28.6 -- -- 28.6
Asset remarketing
income 3.9 25.9 -- -- 29.8
Gain on sale of
securities -- 1.1 -- -- 1.1
Fees 1.5 7.9 -- -- 9.4
Other 18.1 5.9 (.7) -- 23.3
Revenues 335.4 298.7 (.7) -- 633.4
Gain on
extinguishments
of debt -- 14.5 -- -- 14.5
Share of affiliates'
earnings 6.0 33.8 -- -- 39.8
Total Gross
Income 341.4 347.0 (.7) -- 687.7
Ownership Costs
Depreciation 52.4 124.1 -- -- 176.5
Interest, net 29.5 72.2 8.1 -- 109.8
Operating lease
expense 86.1 1.9 -- -- 88.0
Total Ownership
Costs 168.0 198.2 8.1 -- 374.3
Other Costs and
Expenses
Maintenance
expense 74.5 .4 -- -- 74.9
Marine operating
expenses -- 19.6 -- -- 19.6
Other operating
expenses 14.1 3.6 -- -- 17.7
Selling, general
and administra-
tive 37.9 52.9 10.7 -- 101.5
Provision for
possible losses .6 26.3 -- -- 26.9
Asset impairment
charges -- 6.4 -- -- 6.4
Fair value
adjustments for
derivatives (.2) 3.9 -- -- 3.7
Total Other Costs
and Expenses 126.9 113.1 10.7 -- 250.7
Income (Loss) from
Continuing
Operations before
Income Taxes and
Cumulative
Effect of
Accounting
Change 46.5 35.7 (19.5) -- 62.7
Income Tax
Provision
(Benefit) 16.3 13.6 (6.5) -- 23.4
Income (Loss)
from Continuing
Operations
Before Cumulative
Effect of
Accounting
Change 30.2 22.1 (13.0) -- 39.3
Discontinued
Operations
Gain on sale
of portion of
segment, net
of taxes -- -- -- 6.2 6.2
Total Discontinued
Operations -- -- -- 6.2 6.2
Income (Loss)
before Cumulative
Effect of
Accounting
Change 30.2 22.1 (13.0) 6.2 45.5
Cumulative
Effect of
Accounting
Change (34.9) -- -- -- (34.9)
Net (Loss)
Income $(4.7) $22.1 $(13.0) $6.2 $10.6
GATX CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION (UNAUDITED)
(In Millions, Except Railcar Data)
2Q03 12/31/2002 2Q02
Total Assets, Excluding Cash (a) $7,160.9 $7,428.5 $ 7,217.3
Reservable Assets 1,050.9 1,245.0 1,390.6
Financial Services Investments 2,773.2 2,900.9 2,918.4
Allowance for Losses 69.3 82.2 91.1
Allowance for Losses as a Percentage
of Reservable Assets 6.6% 6.6% 6.6%
Net Charge-Offs and Asset Impairments
and Write-Downs 31.9 19.1
Net Charge-Offs/Impairments/Write-Downs
as a Percentage of Average Total Assets
(Annualized) 1.8% 1.1%
Non-performing Investments 144.2 94.9 111.4
Non-performing Investments as a
Percentage of Financial Services'
Investments 5.2% 3.3% 3.8%
Capital Structure
Short-term Debt, Net of
Unrestricted Cash (204.6) (217.4) (346.7)
Long-term Debt:
On Balance Sheet
Recourse 3,372.8 3,487.9 3,498.2
Nonrecourse 481.8 594.6 648.2
Off Balance Sheet
Recourse 1,004.8 1,018.8 1,029.5
Nonrecourse 319.7 353.4 343.4
Capital Lease Obligations 128.9 143.7 148.1
Total Net Debt Obligations 5,103.4 5,381.0 5,320.7
Total Recourse Debt 4,301.9 4,433.0 4,329.1
Shareholders' Equity and Allowance
for Losses 877.3 883.8 948.7
Recourse Leverage 4.9 5.0 4.6
Asset Remarketing Income
Disposition gains on owned assets 11.9 17.6
Residual sharing fees 1.3 .9
13.2 18.5
Railcar Data
North American Fleet Utilization 93% 91%
Beginning Fleet Size 106,243 108,918
Additions 421 2,743
Scrappings (1,598) (1,125)
Ending Fleet Size 105,066 110,536
(a) Includes Off Balance Sheet Assets
SOURCE GATX Corporation
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Related links:
http://www.gatx.com
Company News On-Call:
http://www.prnewswire.com/comp/105121.html
CONTACT:
Robert C. Lyons of GATX Corporation,
+1-312-621-6633
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