GlobeNewswire Inc | Jan 28, 2021 08:30AM EST

January 28, 2021

-- Fourth-quarter 2020 net income from continuing operations was $17.8 million or $0.50 per diluted share -- Full-year 2020 net income from continuing operations was $150.2 million or $4.24 per diluted share -- Rail North Americas fleet utilization remained high at 98.1% -- GATX commences program of direct investment in aircraft spare engines

CHICAGO, Jan. 28, 2021 (GLOBE NEWSWIRE) -- GATX Corporation (NYSE:GATX) today reported 2020 fourth-quarter and full-year results. Results for the fourth quarter and full-year ending Dec. 31 are summarized below:

Three Months Ended Twelve Months Ended December 31 December 31Per Diluted Share 2020 2019 2020 2019Income from Continuing Operations $ 0.50 $ 1.18 $ 4.24 $ 4.97 Income from Discontinued ? 0.41 0.03 0.84 OperationsTotal $ 0.50 $ 1.59 $ 4.27 $ 5.81

2020 fourth-quarter net income from continuing operations was $17.8 million or $0.50 per diluted share, compared to net income from continuing operations of $42.1 million or $1.18 per diluted share in the fourth quarter of 2019. Net income from continuing operations for the full-year 2020 was $150.2 million or $4.24 per diluted share, compared to $180.8 million or $4.97 per diluted share in the prior year period.

The 2020 full-year results include a net negative impact of $12.3 million or $0.35 per diluted share related to the elimination of a previously announced tax rate reduction in the United Kingdom. The 2019 full-year results include a net deferred tax benefit of $2.8 million or $0.08 per diluted share related to an enacted tax rate reduction in Alberta, Canada. Details related to these items are provided in the attached Supplemental Information under Tax Adjustments and Other Items.

In the second quarter of 2020, GATX completed the sale of American Steamship Company. As a result, this segment is reported as discontinued operations and prior periods have been recast to conform to the current presentation.

Our 2020 results reflect excellent execution in the face of a challenging year, said Brian A. Kenney, president and chief executive officer of GATX. Despite difficult market conditions at Rail North America, outstanding efforts by our commercial team enabled us to maintain fleet utilization above 98% throughout the year. Persistent industry-wide railcar overcapacity combined with the economic impacts of COVID-19 put significant pressure on lease rates. However, absolute lease rates for most car types stabilized or modestly improved in the second half of the year. Notably, our maintenance cost performance was better than our original expectations coming into 2020, as the efficiencies gained from aggressively moving work from third-party shops into our owned maintenance facilities more than offset COVID-19 related expenses necessary to ensure workplace safety.

Despite the pandemic, demand for railcars remained stable in Europe and India. Rail International maintained high fleet utilization, experienced increases in renewal lease rates, and grew and further diversified its railcar fleets. Nevertheless, COVID-19 adversely affected the pace of new railcar investments in both Europe and India. In Portfolio Management, the Rolls-Royce and Partners Finance affiliates, our joint venture with Rolls-Royce, benefited from a large gain on a transaction involving the refinancing and sale of a group of aircraft spare engines in the third quarter. Apart from this gain, financial results declined due to the significant reduction in global passenger air travel resulting from the pandemic.

Our 2020 full-year investment volume was over $1.0 billion, up significantly from 2019. We continue to execute our strategy of capitalizing on difficult market conditions to invest in attractively priced, long-lived, service-intensive transportation assets. Our acquisition of Trifleet, the world's fourth largest tank container leasing business, further expands and diversifies our asset base. Also, in January 2021, we invested approximately $120 million for the acquisition of Rolls-Royce aircraft spare engines that are on long-term leases to strong airline customers. Investments of this nature provide GATX with promising growth opportunities and reflect our confidence in the future of the aircraft spare engine leasing business. RRPF will continue to invest at the joint venture level while also managing these direct investments for GATX.

Mr. Kenney added, The difficulty in predicting the timing of the COVID-19 pandemic's easing and an economic recovery creates substantial uncertainty in our earnings estimates. While we see some initial signs of recovery in North America railcar leasing, absent an unforeseen demand catalyst, fleet utilization and lease rates are expected to remain under pressure from an ongoing market oversupply of railcars. However, we expect lower lease revenue to be offset by higher asset disposition gains and cost control, leading to essentially flat segment profit at Rail North America in 2021. Rail International is expected to produce higher profitability in 2021 due to continued strong demand for new and existing railcars in Europe and India. At Portfolio Management, we project significantly lower 2021 segment profit as RRPF expects to realize lower gains from asset sales and continued pressure on its customer base due to the severe reduction in global air travel. Considering all these factors, we currently expect 2021 earnings to be in the range of $4.00 to $4.30 per diluted share.

Mr. Kenney concluded, In 2020, GATX executed on our priorities of ensuring the health and safety of our global workforce, maintaining asset utilization, containing costs, and attractively growing our asset base. I am proud of our employees for successfully navigating through a tumultuous year to meet the needs of all of our stakeholders.

RAIL NORTH AMERICARail North America reported segment profit of $49.5 million in the fourth quarter of 2020, compared to $61.1 million in the fourth quarter of 2019. Lower segment profit was primarily due to lower gains on asset dispositions in the quarter. Full-year 2020 Rail North America reported segment profit of $227.6 million, compared to $276.2 million in 2019. Lower segment profit in 2020 was primarily the result of lower lease revenue and lower gains on asset dispositions, partially offset by lower maintenance expense.

At Dec. 31, 2020, Rail North Americas wholly owned fleet was approximately 118,100 cars, including more than 14,300 boxcars. The following fleet statistics and performance discussion exclude the boxcar fleet.

Fleet utilization was 98.1% at the end of the fourth quarter, compared to 98.2% at the end of the prior quarter and 99.3% at 2019 year end. During the fourth quarter, the GATX Lease Price Index (LPI), a weighted-average lease renewal rate for a group of railcars representative of Rail North Americas fleet, was negative 22.6%. This compares to negative 29.4% in the prior quarter and negative 9.1% in the fourth quarter of 2019. The average lease renewal term for railcars included in the LPI during the fourth quarter was 34 months, compared to 29 months in the prior quarter and 37 months in the fourth quarter of 2019. The fourth-quarter renewal success rate was 77.0%, compared to 58.1% in the prior quarter and 84.0% in the fourth quarter of 2019.

For full-year 2020, the renewal lease rate change of the LPI was negative 23.5% and the average renewal term was 31 months, compared to negative 3.9% and 39 months in 2019. The renewal success rate for 2020 was 70.8%, compared to 82.2% in 2019. Total investment volume was $642.0 million in 2020.

Additional fleet statistics, including information on the boxcar fleet, and macroeconomic data related to Rail North Americas business are provided on the last page of this press release.

RAIL INTERNATIONALRail Internationals segment profit was $25.6 million in the fourth quarter of 2020, compared to $22.9 million in the fourth quarter of 2019. Higher segment profit was predominately driven by more railcars on lease. Rail International reported full-year segment profit of $83.5 million in 2020, compared to $78.9 million in 2019. Full-year 2020 segment profit was favorable to 2019 primarily driven by more railcars on lease, partly offset by foreign exchange impacts.

At Dec. 31, 2020, GREs fleet consisted of approximately 26,350 cars and utilization was 98.1%, compared to 98.2% at the end of the prior quarter and 99.3% at 2019 year end.

Additional fleet statistics for GRE are provided on the last page of this press release.

PORTFOLIO MANAGEMENTPortfolio Management reported segment loss of $5.7 million in the fourth quarter of 2020, compared to segment profit of $27.5 million in the fourth quarter of 2019. Lower segment profit was primarily driven by the performance at the Rolls-Royce and Partners Finance (RRPF) affiliates. Full-year 2020 segment profit was $77.4 million, compared to $62.4 million in 2019. The increase in year-to-date segment profit was primarily due to higher marine operating revenue, while a large gain at RRPF from a transaction involving the refinancing and sale of a group of aircraft spare engines in the third quarter also supported higher 2020 segment profit.

DISCONTINUED OPERATIONSIn the second quarter of 2020, GATX completed the sale of American Steamship Company (ASC). The ASC business segment is accounted for as discontinued operations. The final gain on the sale of ASC, net of taxes, was $3.3 million. Results for discontinued operations are summarized below:

(Income per diluted share) Three Months Ended Twelve Months Ended December 31 December 31Discontinued Operations 2020 2019 2020 2019Operations, net of taxes $ ? $ 0.41 $ (0.06 ) $ 0.84 Gain on sale of ASC, net of taxes ? ? 0.09 ? Total Discontinued Operations $ ? $ 0.41 $ 0.03 $ 0.84

COMPANY DESCRIPTIONGATX Corporation (NYSE: GATX) strives to be recognized as the finest railcar leasing company in the world by our customers, our shareholders, our employees and the communities where we operate. As the leading global railcar lessor, GATX has been providing quality railcars and services to its customers for more than 122 years. GATX has been headquartered in Chicago, Illinois since its founding in 1898.

TELECONFERENCE INFORMATIONGATX Corporation will host a teleconference to discuss 2020 fourth-quarter and full-year results. Call details are as follows:

Thursday, Jan. 28, 202111 a.m. Eastern TimeDomestic Dial-In: 1-800-367-2403International Dial-In: 1-334-777-6978Replay: 1-888-203-1112 or 1-719-457-0820 /Access Code: 5315539

Call-in details, a copy of this press release and real-time audio access are available at www.gatx.com. Please access the call 15 minutes prior to the start time. A replay will be available on the same site starting at 2 p.m. (Eastern Time), Jan. 28, 2021.

AVAILABILITY OF INFORMATION ON GATX'S WEBSITEInvestors and others should note that GATX routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the GATX Investor Relations website. While not all of the information that the Company posts to the GATX Investor Relations website is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media and others interested in GATX to review the information that it shares on www.gatx.com under the Investor Relations tab.

FORWARD-LOOKING STATEMENTSStatements in this Earnings Release not based on historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and, accordingly, involve known and unknown risks and uncertainties that are difficult to predict and could cause our actual results, performance, or achievements to differ materially from those discussed. These include statements as to our future expectations, beliefs, plans, strategies, objectives, events, conditions, financial performance, prospects, or future events. In some cases, forward-looking statements can be identified by the use of words such as may, could, expect, intend, plan, seek, anticipate, believe, estimate, predict, potential, outlook, continue, likely, will, would, and similar words and phrases. Forward-looking statements are necessarily based on estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Accordingly, you should not place undue reliance on forward-looking statements, which speak only as of the date they are made, and are not guarantees of future performance. We do not undertake any obligation to publicly update or revise these forward-looking statements.The following factors, in addition to those discussed in our other filings with the SEC, including our Form 10-K for the year ended December 31, 2019 and subsequent reports on Form 10-Q, could cause actual results to differ materially from our current expectations expressed in forward-looking statements:

* events having an adverse impact on assets, customers, or regions * the duration of the global where we have a concentrated COVID-19 pandemic, including investment exposure adverse impacts on our business, * financial and operational risks personnel, operations, commercial associated with long-term purchase activity, supply chain, the demand commitments for transportation for our transportation assets, the assets value of our assets and our * reduced opportunities to generate liquidity asset remarketing income * exposure to damages, fines, * inability to successfully criminal and civil penalties, and consummate and manage ongoing reputational harm arising from a acquisition and divestiture negative outcome in litigation, activities including claims arising from an * reliance on Rolls-Royce in accident involving our connection with our aircraft spare transportation assets engine leasing businesses, and the * inability to maintain our risks that certain factors that transportation assets on lease at adversely affect Rolls-Royce could satisfactory rates due to have an adverse effect on those oversupply of assets in the market businesses or other changes in supply and * fluctuations in foreign exchange demand rates * a significant decline in customer * failure to successfully negotiate demand for our transportation collective bargaining agreements assets or services, including as a with the unions representing a result of: substantial portion of our ? weak macroeconomic employees conditions * asset impairment charges we may be ? weak market conditions required to recognize in our customers' businesses * deterioration of conditions in the ? adverse changes in the capital markets, reductions in our price of, or demand for, credit ratings, or increases in commodities our financing costs ? changes in railroad * changes in banks' inter-lending operations, efficiency, pricing rate reporting practices and the and service offerings, including phasing out of LIBOR those related to ?precision * competitive factors in our primary scheduled railroading? markets, including competitors ? changes in supply with significantly lower costs of chains capital ? availability of * risks related to our international pipelines, trucks, and other operations and expansion into new alternative modes of geographic markets, including transportation laws, regulations, tariffs, taxes, ? changes in conditions treaties or trade barriers affecting the aviation industry, affecting our activities in the including reduced demand for air countries where we do business travel, geographic exposure and * changes in, or failure to comply customer concentrations with, laws, rules and regulations ? other operational or * inability to obtain cost-effective commercial needs or decisions of insurance our customers * environmental liabilities and ? customers' desire to remediation costs buy, rather than lease, our * potential obsolescence of our transportation assets assets * inadequate allowances to cover * higher costs associated with credit losses in our portfolio increased assignments of our * operational, functional and transportation assets following regulatory risks associated with non-renewal of leases, customer severe weather events, climate defaults, and compliance change and natural disasters maintenance programs or other * inability to maintain and secure maintenance initiatives our information technology infrastructure from cybersecurity threats and related disruption of our business

FOR FURTHER INFORMATION CONTACT:GATX CorporationShari HellermanDirector, Investor RelationsGATX Corporation312-621-4285shari.hellerman@gatx.com

GATX CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)(In millions, except per share data)

Three Months Ended Twelve Months Ended December 31 December 31 2020 2019 2020 2019Revenues Lease revenue 274.2 $ 271.7 $ 1,087.5 $ 1,088.5 Marine operating 4.0 3.8 15.6 8.2 revenueOther revenue 26.7 25.0 106.1 105.4 Total Revenues 304.9 300.5 1,209.2 1,202.1 Expenses Maintenance expense 70.7 79.1 315.5 314.4 Marine operating 8.8 6.9 19.7 18.9 expenseDepreciation expense 85.1 81.1 330.5 321.3 Operating lease 11.2 13.3 49.3 54.4 expenseOther operating 9.3 7.8 35.3 31.3 expenseSelling, general and 46.2 50.8 172.0 180.4 administrative expenseTotal Expenses 231.3 239.0 922.3 920.7 Other Income (Expense) Net (loss) gain on (0.6 ) 4.7 41.7 51.6 asset dispositionsInterest expense, net (48.8 ) (45.2 ) (190.3 ) (180.5 ) Other expense (0.8 ) (2.0 ) (13.0 ) (7.3 ) Income before IncomeTaxes and Share of 23.4 19.0 125.3 145.2 Affiliates? EarningsIncome taxes (7.7 ) (9.8 ) (37.3 ) (40.9 ) Share of affiliates? 2.1 32.9 62.2 76.5 earnings, net of taxesNet Income from $ 17.8 $ 42.1 $ 150.2 $ 180.8 Continuing Operations DiscontinuedOperations, Net of TaxesNet income (loss) fromdiscontinued $ ? $ 14.5 $ (2.2 ) $ 30.4 operations, net oftaxesGain on sale ofdiscontinued ? ? 3.3 ? operations, net oftaxesTotal DiscontinuedOperations, Net of $ ? $ 14.5 $ 1.1 $ 30.4 Taxes Net Income $ 17.8 $ 56.6 $ 151.3 $ 211.2 Share Data Basic earnings pershare from continuing $ 0.51 $ 1.21 $ 4.30 $ 5.07 operationsBasic earnings pershare from ? 0.41 0.03 0.85 discontinuedoperationsBasic earnings pershare from $ 0.51 $ 1.62 $ 4.33 $ 5.92 consolidatedoperationsAverage number of 35.0 34.9 35.0 35.7 common shares Diluted earnings pershare from continuing $ 0.50 $ 1.18 $ 4.24 $ 4.97 operationsDiluted earnings pershare from ? 0.41 0.03 0.84 discontinuedoperationsDiluted earnings pershare from $ 0.50 $ 1.59 $ 4.27 $ 5.81 consolidatedoperationsAverage number ofcommon shares and 35.6 35.6 35.4 36.4 common shareequivalents Dividends declared per $ 0.48 $ 0.46 $ 1.92 $ 1.84 common share

GATX CORPORATION AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS (UNAUDITED)(In millions)

December 31 December 31 2020 2019Assets Cash and Cash Equivalents $ 292.2 $ 151.0 Restricted Cash 0.4 ? Receivables Rent and other receivables 74.7 65.9 Finance leases (as lessor) 74.0 90.3 Less: allowance for losses (6.5 ) (6.2 ) 142.2 150.0 Operating Assets and Facilities 10,484.0 9,523.5 Less: allowance for depreciation (3,313.3 ) (3,066.2 ) 7,170.7 6,457.3 Lease Assets (as lessee) Right-of-use assets, net of accumulated 335.9 411.7 depreciationFinance leases, net of accumulated depreciation 37.5 8.9 373.4 420.6 Investments in Affiliated Companies 584.7 512.6 Goodwill 143.7 81.5 Other Assets 230.3 221.0 Assets of Discontinued Operations ? 291.1 Total Assets $ 8,937.6 $ 8,285.1 Liabilities and Shareholders? Equity Accounts Payable and Accrued Expenses 147.3 $ 119.4 Debt Commercial paper and borrowings under bank credit 23.6 15.8 facilitiesRecourse 5,329.0 4,780.4 5,352.6 4,796.2 Lease Obligations (as lessee) Operating leases 348.6 429.4 Finance leases 33.3 7.9 381.9 437.3 Deferred Income Taxes 962.8 888.5 Other Liabilities 135.6 139.1 Liabilities of Discontinued Operations ? 69.5 Total Liabilities 6,980.2 6,450.0 Total Shareholders? Equity 1,957.4 1,835.1 Total Liabilities and Shareholders? Equity $ 8,937.6 $ 8,285.1

GATX CORPORATION AND SUBSIDIARIESSEGMENT DATA (UNAUDITED)Three Months Ended December 31, 2020 (In millions)

Rail Rail Portfolio GATX North International Management Other Consolidated AmericaRevenues Lease revenue $ 207.5 $ 66.5 $ 0.2 $ ? $ 274.2 Marineoperating ? ? 4.0 ? 4.0 revenueOther revenue 23.3 3.2 0.2 ? 26.7 Total Revenues 230.8 69.7 4.4 ? 304.9 Expenses Maintenance 58.2 12.5 ? ? 70.7 expenseMarineoperating ? ? 8.8 ? 8.8 expenseDepreciation 65.6 18.2 1.3 ? 85.1 expenseOperating lease 11.2 ? ? ? 11.2 expenseOther operating 6.5 2.6 0.2 ? 9.3 expenseTotal Expenses 141.5 33.3 10.3 ? 185.1 Other Income (Expense)Net (loss) gainon asset (1.6 ) 0.4 0.6 ? (0.6 ) dispositionsInterest(expense) (36.4 ) (11.9 ) (3.1 ) 2.6 (48.8 ) income, netOther (expense) (1.7 ) 0.7 ? 0.2 (0.8 ) incomeShare ofaffiliates' (0.1 ) ? 2.7 ? 2.6 pre-tax (loss)incomeSegment profit $ 49.5 $ 25.6 $ (5.7 ) $ 2.8 $ 72.2 (loss)Less: Selling, general and administrative expense 46.2 Income taxes (includes $0.5 related to affiliates' earnings) 8.2 Net income from continuing operations $ 17.8 Discontinued operations, net of taxes Net income from discontinuing operations, net of taxes $ ? Loss on sale of discontinued operations, net of taxes ? Total discontinued operations, net of taxes $ ? Net income $ 17.8 Selected Data: Investment $ 167.4 $ 51.5 $ 0.2 $ 203.5 $ 422.6 volume Net (Loss) Gainon Asset DispositionsAssetRemarketing Income:Net (loss)gains on $ (0.3 ) $ 0.3 $ ? $ ? $ ? disposition ofowned assetsResidual 0.1 ? 0.6 ? 0.7 sharing incomeNon-remarketing (1.1 ) 0.1 ? ? (1.0 ) net gains (1)Asset (0.3 ) ? ? ? (0.3 ) impairments $ (1.6 ) $ 0.4 $ 0.6 $ ? $ (0.6 )

___________(1) Includes net gains (losses) from scrapping of railcars.

GATX CORPORATION AND SUBSIDIARIESSEGMENT DATA (UNAUDITED)Three Months Ended December 31, 2019(In millions)

Rail Rail Portfolio GATX North International Management Other Consolidated AmericaRevenues Lease revenue $ 214.0 $ 57.5 $ 0.2 $ ? $ 271.7 Marineoperating ? ? 3.8 ? 3.8 revenueOther revenue 22.5 2.3 0.2 ? 25.0 Total Revenues 236.5 59.8 4.2 ? 300.5 Expenses Maintenance 68.1 11.0 ? ? 79.1 expenseMarineoperating ? ? 6.9 ? 6.9 expenseDepreciation 64.3 15.1 1.7 ? 81.1 expenseOperating lease 13.3 ? ? ? 13.3 expenseOther operating 4.9 2.6 0.3 ? 7.8 expenseTotal Expenses 150.6 28.7 8.9 ? 188.2 Other Income (Expense)Net gain (loss)on asset 10.0 0.5 (5.8 ) ? 4.7 dispositionsInterest(expense) (33.1 ) (10.4 ) (2.9 ) 1.2 (45.2 ) income, netOther (expense) (1.7 ) 1.7 ? (2.0 ) (2.0 ) incomeShare ofaffiliates' ? ? 40.9 ? 40.9 pre-tax incomeSegment profit $ 61.1 $ 22.9 $ 27.5 $ (0.8 ) $ 110.7 (loss)Less: Selling, general and administrative expense 50.8 Income taxes (includes $8.0 related to affiliates' earnings) 17.8 Net income from continuing operations $ 42.1 Discontinued operations, net of taxes Net income from discontinued operations, net of taxes $ 14.5 Gain on sale of discontinued operations, net of taxes ? Total discontinued operations, net of taxes $ 14.5 Net income $ 56.6 Selected Data: Investment $ 159.8 $ 57.1 $ ? $ 2.1 $ 219.0 volume Net Gain (Loss)on Asset DispositionsAssetRemarketing Income:Net gains ondisposition of $ 17.6 $ 0.1 $ ? $ ? $ 17.7 owned assetsResidual 0.1 ? 0.4 ? 0.5 sharing incomeNon-remarketingnet (losses) (7.3 ) 0.4 ? ? (6.9 ) gains (1)Asset (0.4 ) ? (6.2 ) ? (6.6 ) impairments $ 10.0 $ 0.5 $ (5.8 ) $ ? $ 4.7

__________(1) Includes net gains (losses) from scrapping of railcars.

GATX CORPORATION AND SUBSIDIARIESSEGMENT DATA (UNAUDITED)Twelve Months Ended December 31, 2020(In millions)

Rail Rail Portfolio GATX North International Management Other Consolidated AmericaRevenues Lease revenue $ 838.3 $ 248.4 $ 0.8 $ ? $ 1,087.5 Marineoperating ? ? 15.6 ? 15.6 revenueOther revenue 95.8 9.7 0.6 ? 106.1 Total Revenues 934.1 258.1 17.0 ? 1,209.2 Expenses Maintenance 264.7 50.8 ? ? 315.5 expenseMarineoperating ? ? 19.7 ? 19.7 expenseDepreciation 258.6 66.6 5.3 ? 330.5 expenseOperating lease 49.3 ? ? ? 49.3 expenseOther operating 27.3 7.5 0.5 ? 35.3 expenseTotal Expenses 599.9 124.9 25.5 ? 750.3 Other Income (Expense)Net gain onasset 38.3 1.2 2.2 ? 41.7 dispositionsInterest(expense) (139.9 ) (45.9 ) (12.2 ) 7.7 (190.3 ) income, netOther expense (4.9 ) (5.0 ) ? (3.1 ) (13.0 ) Share ofaffiliates' (0.1 ) ? 95.9 ? 95.8 pre-tax (loss)incomeSegment profit $ 227.6 $ 83.5 $ 77.4 $ 4.6 $ 393.1 Less: Selling, general and administrative expense 172.0 Income taxes (includes $33.6 related to affiliates' earnings) 70.9 Net income from continuing operations $ 150.2 Discontinued operations, net of taxes Net loss from discontinued operations, net of taxes $ (2.2 ) Gain on sale of discontinued operations, net of taxes 3.3 Total discontinued operations, net of taxes $ 1.1 Net income $ 151.3 Selected Data: Investment $ 642.0 $ 216.0 $ 0.5 $ 205.5 $ 1,064.0 volume Net Gain (Loss)on Asset DispositionsAssetRemarketing Income:Net gains ondisposition of $ 38.8 $ 0.5 $ 0.1 $ ? $ 39.4 owned assetsResidual 0.4 ? 2.1 ? 2.5 sharing incomeNon-remarketingnet losses (0.6 ) 0.7 ? ? 0.1 (gains) (1)Asset (0.3 ) ? ? ? (0.3 ) impairments $ 38.3 $ 1.2 $ 2.2 $ ? $ 41.7

__________(1) Includes net gains (losses) from scrapping of railcars.

GATX CORPORATION AND SUBSIDIARIESSEGMENT DATA (UNAUDITED)Twelve Months Ended December 31, 2019(In millions)

Rail Rail Portfolio GATX North International Management Other Consolidated AmericaRevenues Lease revenue $ 868.3 $ 219.2 $ 1.0 $ ? $ 1,088.5 Marineoperating ? ? 8.2 ? 8.2 revenueOther revenue 96.2 8.5 0.7 ? 105.4 Total Revenues 964.5 227.7 9.9 ? 1,202.1 Expenses Maintenance 267.9 46.5 ? ? 314.4 expenseMarineoperating ? ? 18.9 ? 18.9 expenseDepreciation 256.9 57.8 6.6 ? 321.3 expenseOperating lease 54.4 ? ? ? 54.4 expenseOther operating 23.9 6.8 0.6 ? 31.3 expenseTotal Expenses 603.1 111.1 26.1 ? 740.3 Other Income (Expense)Net gain (loss)on asset 54.6 1.7 (4.7 ) ? 51.6 dispositionsInterest(expense) (134.5 ) (40.6 ) (11.2 ) 5.8 (180.5 ) income, netOther (expense) (5.3 ) 1.2 ? (3.2 ) (7.3 ) incomeShare ofaffiliates' ? ? 94.5 ? 94.5 pre-tax incomeSegment profit $ 276.2 $ 78.9 $ 62.4 $ 2.6 $ 420.1 Less: Selling, general and administrative expense 180.4 Income taxes (includes $18.0 related to affiliates' earnings) 58.9 Net income from continuing operations $ 180.8 Discontinued operations, net of taxes Net income from discontinued operations, net of taxes $ 30.4 Gain on sale of discontinued operations, net of taxes ? Total discontinued operations, net of taxes $ 30.4 Net income $ 211.2 Selected Data: Investment $ 502.2 $ 215.7 $ ? $ 4.9 $ 722.8 volume Net Gain (Loss)on Asset DispositionsAssetRemarketing Income:Net gains ondisposition of $ 58.5 $ 0.1 $ ? $ ? $ 58.6 owned assetsResidual 0.4 ? 1.5 ? 1.9 sharing incomeNon-remarketingnet (losses) (3.9 ) 1.6 ? ? (2.3 ) gains (1)Asset (0.4 ) ? (6.2 ) ? (6.6 ) impairments $ 54.6 $ 1.7 $ (4.7 ) $ ? $ 51.6

__________(1) Includes net gains from scrapping of railcars.

GATX CORPORATION AND SUBSIDIARIESSUPPLEMENTAL INFORMATION (UNAUDITED)(In millions, except per share data)

Impact of Tax Adjustments and Other Items on Net Income*

Three Months Ended Twelve Months Ended December 31 December 31 2020 2019 2020 2019Net income (GAAP) $ 17.8 $ 56.6 $ 151.3 $ 211.2 Less: Net income from ? 14.5 1.1 30.4 discontinued operations (GAAP)Net income from continuing $ 17.8 $ 42.1 $ 150.2 $ 180.8 operations (GAAP) Other income tax adjustments attributable to income from continuing operations:Income tax rate change enacted in ? ? ? (2.8 ) Alberta, CanadaAdjustments attributable toaffiliates' earnings, net of taxes:Income tax rate change enacted in ? ? 12.3 ? the United KingdomNet income from continuingoperations, excluding tax $ 17.8 $ 42.1 $ 162.5 $ 178.0 adjustments and other items(non-GAAP)Net income from discontinuedoperations, excluding tax $ ? $ 6.4 $ 1.1 $ 22.3 adjustments and other items(non-GAAP)Net income from consolidatedoperations, excluding tax $ 17.8 $ 48.5 $ 163.6 $ 200.3 adjustments and other items(non-GAAP)

Impact of Tax Adjustments and Other Items on Diluted Earnings per Share*

Three Months Ended Twelve Months Ended December 31 December 31 2020 2019 2020 2019Diluted earnings per share from 0.50 $ 1.18 $ 4.24 $ 4.97 continuing operations (GAAP)Diluted earnings per share from $ ? 0.41 0.03 0.84 discontinued operations (GAAP)Diluted earnings per share from $ 0.50 $ 1.59 $ 4.27 $ 5.81 consolidated operations (GAAP) Diluted earnings per share fromcontinuing operations, excluding $ 0.50 $ 1.18 $ 4.59 $ 4.89 tax adjustments and other items(non-GAAP)Diluted earnings per share fromdiscontinued operations, excluding $ ? $ 0.18 $ 0.03 $ 0.62 tax adjustments and other items(non-GAAP)Diluted earnings per share fromconsolidated operations, excluding $ 0.50 $ 1.36 $ 4.62 $ 5.51 tax adjustments and other items(non-GAAP)

Impact of Tax Adjustments and Other Items on Return on Equity*

Twelve Months Ended December 31 2020 2019Return on Equity (GAAP) 8.0 % 11.7 %Return on Equity, excluding tax adjustments and other items 10.5 % 13.5 %(non-GAAP) (1)

_________

(1) Shareholders' equity used in this calculation excludes the impact of the Tax Act.

(*) In addition to financial results reported in accordance with GAAP, we compute certain financial measures using non-GAAP components. Specifically, we exclude the effects of certain tax adjustments and other items for purposes of presenting net income, diluted earnings per share, and return on equity because we believe these items are not attributable to our business operations. Management utilizes net income, excluding tax adjustments and other items, when analyzing financial performance because such amounts reflect the underlying operating results that are within managements ability to influence. Accordingly, we believe presenting this information provides investors and other users of our financial statements with meaningful supplemental information for purposes of analyzing year-to-year financial performance on a comparable basis and assessing trends.

GATX CORPORATION AND SUBSIDIARIESSUPPLEMENTAL INFORMATION (UNAUDITED)(In millions, except leverage)

12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019Total Assets,Excluding Cash, bySegmentRail North $ 5,887.5 $ 5,801.5 $ 5,700.2 $ 5,634.6 $ 5,632.4 AmericaRail 1,805.2 1,615.0 1,534.2 1,447.7 1,462.8 InternationalPortfolio 700.5 707.6 675.1 656.5 637.0 ManagementOther 251.8 106.4 110.3 107.6 110.8 Discontinued ? ? ? 300.8 291.1 OperationsTotal Assets,excluding $ 8,645.0 $ 8,230.5 $ 8,019.8 $ 8,147.2 $ 8,134.1 cashDebt and Lease Obligations, Net of Unrestricted CashUnrestricted $ (292.2 ) $ (459.8 ) $ (492.9 ) $ (570.7 ) $ (151.0 ) cashCommercialpaper and 23.6 13.5 5.9 275.5 15.8 bank creditfacilitiesRecourse debt 5,329.0 5,183.0 5,047.5 5,043.7 4,780.4 Operatinglease 348.6 368.0 372.3 399.3 432.3 obligationsFinance lease 33.3 ? 31.8 ? 7.9 obligationsTotal debtand leaseobligations, 5,442.3 5,104.7 4,964.6 5,147.8 5,085.4 net ofunrestrictedcashShareholders? $ 1,957.4 $ 1,930.0 $ 1,875.3 $ 1,831.0 $ 1,835.1 EquityRecourse 2.8 2.6 2.6 2.8 2.8 Leverage (1)

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(1) Calculated as total recourse debt / shareholder's equity.

Reconciliation of Total Assets to Total Assets, Excluding CashTotal $ 8,937.6 $ 8,690.3 $ 8,512.7 $ 8,717.9 $ 8,285.1 AssetsLess: (292.6 ) (459.8 ) (492.9 ) (570.7 ) (151.0 ) cashTotalAssets, $ 8,645.0 $ 8,230.5 $ 8,019.8 $ 8,147.2 $ 8,134.1 excludingcash

GATX CORPORATION AND SUBSIDIARIESSUPPLEMENTAL INFORMATION (UNAUDITED)(Continued)

12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019Rail NorthAmerica StatisticsLease Price Index (LPI) (1)Average renewallease rate (22.6 )% (29.4 )% (28.0 )% (11.6 )% (9.1 )%changeAverage renewal 34 29 31 31 37 term (months)Fleet Rollforward (2)Beginning 103,363 102,891 102,558 102,845 103,255 balanceCars added 1,015 1,578 1,220 883 965 Cars scrapped (571 ) (623 ) (570 ) (389 ) (620 )Cars sold (62 ) (483 ) (317 ) (781 ) (755 )Ending balance 103,745 103,363 102,891 102,558 102,845 Utilization 98.1 % 98.2 % 98.7 % 99.0 % 99.3 %Average active 101,723 101,552 101,600 101,668 102,309 railcarsBoxcar Fleet Ending balance 14,315 14,753 14,936 15,026 15,264 Utilization 95.8 % 94.5 % 94.6 % 94.6 % 95.0 %Rail Europe StatisticsFleet RollforwardBeginning 25,956 25,705 25,352 24,561 24,211 balanceCars added 446 331 423 871 416 Cars scrapped/ (59 ) (80 ) (70 ) (80 ) (66 )soldEnding balance 26,343 25,956 25,705 25,352 24,561 Utilization 98.1 % 98.2 % 98.4 % 98.5 % 99.3 %Average active 25,669 25,369 25,100 24,622 24,216 railcarsRail NorthAmerica Industry StatisticsManufacturingCapacity 74.5 % 72.3 % 68.7 % 73.5 % 77.1 %UtilizationIndex (3)Year-over-yearChange in U.S.Carloadings (12.9 )% (15.3 )% (15.9 )% (6.3 )% (4.9 )%(excl.intermodal) (4)Year-over-yearChange in U.S. (3.4 )% (5.1 )% (5.0 )% 3.1 % (0.6 )%Carloadings(chemical) (4)Year-over-yearChange in U.S. (14.0 )% (12.5 )% (11.1 )% 3.6 % 12.2 %Carloadings(petroleum) (4)ProductionBacklog atRailcar 34,598 37,417 39,612 46,330 51,295 Manufacturers(5)AmericanSteamship CompanyStatisticsTotal Net TonsCarried ? ? 2.7 1.0 7.5 (millions) (6)

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(1) GATX's Lease Price Index (LPI) is an internally-generated business indicator that measures lease rate pricing on renewals for our North American railcar fleet, excluding boxcars. GATX calculates the index using the weighted-average lease rate for a group of railcar types that GATX believes best represents its overall North American fleet, excluding boxcars. The average renewal lease rate change is reported as the percentage change between the average renewal lease rate and the average expiring lease rate, weighted by fleet composition. The average renewal lease term is reported in months and reflects the average renewal lease term of railcar types in the LPI, weighted by fleet composition.(2) Excludes boxcar fleet.(3) As reported and revised by the Federal Reserve.(4) As reported by the Association of American Railroads (AAR).(5) As reported by the Railway Supply Institute (RSI).(6) Total net tons carried for the second quarter of 2020 reflects volume through May 14, 2020, the date of the sale.