CHICAGO, Dec. 6 /PRNewswire-FirstCall/ -- GATX Corporation (NYSE: GMT)
today summarized its lease exposure to UAL Corporation in the wake of recent
developments. UAL Corporation is the holding company for United Air Lines,
Inc.
As noted in air presentations that are available at http://www.gatx.com , GATX
currently has two Boeing 737-300 aircraft on lease to United. GATX owns 50%
of each aircraft with the balance held by another financial institution. The
aircraft are approximately 12 years old and represent a combined net book
value of $25 million, or 1.5% of GATX Air's total aircraft portfolio. GATX's
share of lease income from these aircraft is approximately $2 million
annually. GATX also has one Boeing 727 on lease to United, and this aircraft
has been scheduled for scrapping and carries nearly zero book value.
Alan C. Coe, president of GATX Air, stated, "United's challenges are well
documented publicly, and while the impact that their future actions may have
on the rest of the air industry is unknown at this point, our direct lease
exposure to United is very limited."
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, information technology leasing, venture finance and
diversified finance.
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; unanticipated costs or issues arising from the Federal Railroad
Administration's Railworthiness Directive HM-04 or subsequent regulatory
rulings that impact the economic value of assets; competitors in the rail and
air markets who may have access to capital at lower costs that 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 .
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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