Business Wire | Oct 21, 2021 08:31AM EDT

GATX Corporation Reports 2021 Third-Quarter Results

Oct. 21, 2021

CHICAGO--(BUSINESS WIRE)--Oct. 21, 2021--GATX Corporation (NYSE:GATX) today reported 2021 third-quarter results. Results for the third quarter and nine months ended September 30, 2021 are summarized below:

Three Months Ended Nine Months Ended September 30 September 30

Per Diluted Share 2021 2020 2021 2020

Income from Continuing Operations $ 1.11 $ 1.36 $ 2.28 $ 3.74

Income from Discontinued - (0.01 ) - 0.03 Operations

Total $ 1.11 $ 1.35 $ 2.28 $ 3.77

2021 third-quarter net income from continuing operations was $40.1 million or $1.11 per diluted share, compared to net income from continuing operations of $48.2 million or $1.36 per diluted share in the third quarter of 2020. Net income from continuing operations for the first nine months of 2021 was $82.1 million or $2.28 per diluted share, compared to $132.4 million or $3.74 per diluted share in the prior year period. The 2021 year-to-date results include a net negative impact of $39.7 million or $1.10 per diluted share related to an enacted tax rate increase in the United Kingdom and a net negative impact of $3.4 million or $0.09 per diluted share attributed to debt extinguishment costs associated with an early redemption. The 2020 third-quarter and year-to-date 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. Details related to these items are provided in the attached Supplemental Information under Impact of Tax Adjustments and Other Items on Net Income.

Net income from discontinued operations in the third-quarter and year-to-date periods of 2021 was zero, compared to net loss of $0.3 million or $(0.01) per diluted share in the third quarter of 2020 and net income of $1.1 million or $0.03 per diluted share for the first nine months of 2020.

"We continue to see improvement across our global railcar leasing markets," said Brian A. Kenney, president and chief executive officer of GATX. "In North America, GATX's fleet utilization increased to 99.2% at quarter end and our renewal success rate was 84%. Absolute lease rates across the majority of our fleet increased for the fifth quarter in a row, while the third-quarter renewal lease rate change of GATX's Lease Price Index was in line with our expectations at negative 8.1%.

"Rail International continues to perform well, as demand for railcars in Europe and India remains robust. GATX Rail Europe's fleet utilization remained high at 98.1% and renewal lease rates for most car types increased versus the expiring rates. GATX Rail Europe and GATX Rail India continued to grow and diversify their fleets during the quarter. However, the pace of fleet growth in 2021 has been negatively impacted by COVID-19-related new car delivery delays in both regions. In Portfolio Management, the Rolls-Royce and Partners Finance affiliates performed as expected in a challenging operating environment for international air travel."

Mr. Kenney concluded, "Based on year-to-date performance and our outlook for the remainder of the year, we continue to expect our 2021 full-year earnings to be in the range of $4.30 to $4.50 per diluted share. This guidance excludes any impact from Tax Adjustments and Other Items."

RAIL NORTH AMERICA

Rail North America reported segment profit of $66.5 million in the third quarter of 2021, compared to $56.1 million in the third quarter of 2020. Year to date, Rail North America reported segment profit of $209.8 million, compared to $178.1 million in the same period of 2020. Higher third-quarter and year-to-date segment profit was predominantly driven by higher gains on asset dispositions and lower maintenance expense, partially offset by lower revenue.

At Sept. 30, 2021, Rail North America's wholly owned fleet was comprised of approximately 114,200 cars, including over 12,800 boxcars. The following fleet statistics and performance discussion exclude the boxcar fleet.

Fleet utilization was 99.2% at the end of the third quarter, compared to 98.5% at the end of the prior quarter and 98.2% at the end of the third quarter of 2020. During the third quarter, the renewal lease rate change of the GATX Lease Price Index (LPI) was negative 8.1%. This compares to negative 6.7% in the prior quarter and negative 29.4% in the third quarter of 2020. The average lease renewal term for all cars included in the LPI during the third quarter was 32 months, compared to 29 months in the prior quarter and 29 months in the third quarter of 2020. Rail North America's investment volume during the third quarter was $178.9 million.

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

RAIL INTERNATIONAL

Rail International's segment profit was $27.0 million in the third quarter of 2021, compared to $24.0 million in the third quarter of 2020. Rail International reported segment profit of $76.1 million year-to-date 2021, compared to $57.9 million for the same period of 2020. The increase in third-quarter and year-to-date segment profit was predominately driven by more railcars on lease.

At Sept. 30, 2021, GATX Rail Europe's (GRE) fleet consisted of over 26,800 cars. Utilization was 98.1%, compared to 98.4% at the end of the prior quarter and 98.2% at the end of the third quarter of 2020. Additional fleet statistics for GRE are provided on the last page of this press release.

PORTFOLIO MANAGEMENT

Portfolio Management reported segment profit of $6.2 million in the third quarter of 2021, compared to $44.3 million in the third quarter of 2020. Segment profit year-to-date 2021 was $24.5 million, compared to $83.1 million for the same period of 2020. The decline in segment profit in the comparative periods was primarily driven by lower share of affiliates' earnings from the Rolls-Royce and Partners Finance affiliates, and in particular a large gain in the third quarter of 2020 from a transaction involving the refinancing and sale of a group of aircraft spare engines.

DISCONTINUED OPERATIONS

In the second quarter of 2020, GATX completed the sale of American Steamship Company (ASC). The ASC business segment is accounted for as discontinued operations. Results for discontinued operations are summarized below:

Three Months Ended Nine Months Ended(Income per diluted share) September 30 September 30

Discontinued Operations 2021 2020 2021 2020

Operations, net of taxes $ - $ - $ - $ (0.06 )

Gain on sale of ASC, net of taxes - (0.01 ) - 0.09

Total Discontinued Operations $ - $ (0.01 ) $ - $ 0.03

COMPANY DESCRIPTION

GATX 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 120 years. GATX has been headquartered in Chicago, Illinois since its founding in 1898.

TELECONFERENCE INFORMATION

GATX Corporation will host a teleconference to discuss 2021 third-quarter results. Call details are as follows:

Thursday, Oct. 21, 2021 11 a.m. Eastern TimeDomestic Dial-In: 1-800-367-2403 International Dial-In: 1-334-777-6978 Replay: 1-888-203-1112 or 1-719-457-0820 /Access Code: 9998699

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), Oct. 21, 2021.

AVAILABILITY OF INFORMATION ON GATX'S WEBSITE

Investors 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 STATEMENTS

Statements 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, 2020 and subsequent reports on Form 10-Q, could cause actual results to differ materially from our current expectations expressed in forward-looking statements:



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

GATX CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(In millions, except per share data)

Three Months Ended

September 30

Nine Months Ended

September 30

2021

2020

2021

2020

Revenues

Lease revenue

$

283.9

$

273.3

$

852.1

$

813.3

Marine operating revenue

5.0

5.0

13.7

11.6

Other revenue

24.6

26.1

70.6

79.4

Total Revenues

313.5

304.4

936.4

904.3

Expenses

Maintenance expense

74.2

76.7

225.1

244.8

Marine operating expense

3.7

3.6

13.8

10.9

Depreciation expense

91.1

83.4

271.2

245.4

Operating lease expense

9.0

12.3

30.1

38.1

Other operating expense

9.7

8.3

31.3

26.0

Selling, general and administrative expense

45.9

42.0

140.8

125.8

Total Expenses

233.6

226.3

712.3

691.0

Other Income (Expense)

Net gain on asset dispositions

21.9

8.9

79.1

42.3

Interest expense, net

(49.8

)

(48.6

)

(153.4

)

(141.5

)

Other expense

(0.3

)

(1.2

)

(9.7

)

(12.2

)

Income before Income Taxes and Share of Affiliates' Earnings

51.7

37.2

140.1

101.9

Income taxes

(14.4

)

(11.8

)

(36.4

)

(29.6

)

Share of affiliates' earnings, net of taxes

2.8

22.8

(21.6

)

60.1

Net Income from Continuing Operations

40.1

48.2

$

82.1

$

132.4

Discontinued Operations, Net of Taxes

Net loss from discontinued operations, net of taxes

$

-

$

-

$

-

$

(2.2

)

(Loss) gain on sale of discontinued operations, net of taxes

-

(0.3

)

-

3.3

Discontinued Operations, Net of Taxes

-

(0.3

)

$

-

$

1.1

Net Income

$

40.1

$

47.9

$

82.1

$

133.5

Share Data

Basic earnings per share from continuing operations

$

1.13

$

1.38

$

2.32

$

3.79

Basic earnings per share from discontinued operations

-

(0.01

)

-

0.03

Basic earnings per share from consolidated operations

$

1.13

$

1.37

$

2.32

$

3.82

Average number of common shares

35.5

35.0

35.4

34.9

Diluted earnings per share from continuing operations

$

1.11

$

1.36

$

2.28

$

3.74

Diluted earnings per share from discontinued operations

-

(0.01

)

-

0.03

Diluted earnings per share from consolidated operations

$

1.11

$

1.35

$

2.28

$

3.77

Average number of common shares and common share equivalents

36.0

35.4

36.0

35.4

Dividends declared per common share

$

0.50

$

0.48

$

1.50

$

1.44

GATX CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(In millions, except per share data)

Three Months Ended Nine Months Ended September 30 September 30

2021 2020 2021 2020

Revenues

Lease revenue $ 283.9 $ 273.3 $ 852.1 $ 813.3

Marine operating 5.0 5.0 13.7 11.6 revenue

Other revenue 24.6 26.1 70.6 79.4

Total Revenues 313.5 304.4 936.4 904.3

Expenses

Maintenance expense 74.2 76.7 225.1 244.8

Marine operating 3.7 3.6 13.8 10.9 expense

Depreciation expense 91.1 83.4 271.2 245.4

Operating lease expense 9.0 12.3 30.1 38.1

Other operating expense 9.7 8.3 31.3 26.0

Selling, general and 45.9 42.0 140.8 125.8 administrative expense

Total Expenses 233.6 226.3 712.3 691.0

Other Income (Expense)

Net gain on asset 21.9 8.9 79.1 42.3 dispositions

Interest expense, net (49.8 ) (48.6 ) (153.4 ) (141.5 )

Other expense (0.3 ) (1.2 ) (9.7 ) (12.2 )

Income before IncomeTaxes and Share of 51.7 37.2 140.1 101.9 Affiliates' Earnings

Income taxes (14.4 ) (11.8 ) (36.4 ) (29.6 )

Share of affiliates' 2.8 22.8 (21.6 ) 60.1 earnings, net of taxes

Net Income from 40.1 48.2 $ 82.1 $ 132.4 Continuing Operations



DiscontinuedOperations, Net of Taxes

Net loss fromdiscontinued $ - $ - $ - $ (2.2 ) operations, net of taxes

(Loss) gain on sale ofdiscontinued - (0.3 ) - 3.3 operations, net of taxes

DiscontinuedOperations, Net of - (0.3 ) $ - $ 1.1 Taxes



Net Income $ 40.1 $ 47.9 $ 82.1 $ 133.5



Share Data

Basic earnings pershare from continuing $ 1.13 $ 1.38 $ 2.32 $ 3.79 operations

Basic earnings pershare from discontinued - (0.01 ) - 0.03 operations

Basic earnings pershare from consolidated $ 1.13 $ 1.37 $ 2.32 $ 3.82 operations

Average number of 35.5 35.0 35.4 34.9 common shares



Diluted earnings pershare from continuing $ 1.11 $ 1.36 $ 2.28 $ 3.74 operations

Diluted earnings pershare from discontinued - (0.01 ) - 0.03 operations

Diluted earnings pershare from consolidated $ 1.11 $ 1.35 $ 2.28 $ 3.77 operations

Average number ofcommon shares and 36.0 35.4 36.0 35.4 common share equivalents



Dividends declared per $ 0.50 $ 0.48 $ 1.50 $ 1.44 common share

GATX CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In millions)

September 30

December 31

2021

2020

Assets

Cash and Cash Equivalents

$

566.0

$

292.2

Restricted Cash

0.2

0.4

Receivables

Rent and other receivables

75.2

74.7

Finance leases (as lessor)

71.5

74.0

Less: allowance for losses

(6.4

)

(6.5

)

140.3

142.2

Operating Assets and Facilities

11,025.8

10,484.0

Less: allowance for depreciation

(3,352.3

)

(3,313.3

)

7,673.5

7,170.7

Lease Assets (as lessee)

Right-of-use assets, net of accumulated depreciation

279.2

335.9

Finance leases, net of accumulated depreciation

-

37.5

279.2

373.4

Investments in Affiliated Companies

564.4

584.7

Goodwill

138.7

143.7

Other Assets

224.0

230.3

Total Assets

$

9,586.3

$

8,937.6

Liabilities and Shareholders' Equity

Accounts Payable and Accrued Expenses

$

164.1

$

147.3

Debt

Commercial paper and borrowings under bank credit facilities

20.7

23.6

Recourse

6,029.8

5,329.0

6,050.5

5,352.6

Lease Obligations (as lessee)

Operating leases

292.1

348.6

Finance leases

-

33.3

292.1

381.9

Deferred Income Taxes

977.7

962.8

Other Liabilities

125.0

135.6

Total Liabilities

7,609.4

6,980.2

Total Shareholders' Equity

1,976.9

1,957.4

Total Liabilities and Shareholders' Equity

$

9,586.3

$

8,937.6

GATX CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In millions)

September 30 December 31

2021 2020

Assets

Cash and Cash Equivalents $ 566.0 $ 292.2

Restricted Cash 0.2 0.4

Receivables

Rent and other receivables 75.2 74.7

Finance leases (as lessor) 71.5 74.0

Less: allowance for losses (6.4 ) (6.5 )

140.3 142.2



Operating Assets and Facilities 11,025.8 10,484.0

Less: allowance for depreciation (3,352.3 ) (3,313.3 )

7,673.5 7,170.7

Lease Assets (as lessee)

Right-of-use assets, net of accumulated 279.2 335.9 depreciation

Finance leases, net of accumulated depreciation - 37.5

279.2 373.4



Investments in Affiliated Companies 564.4 584.7

Goodwill 138.7 143.7

Other Assets 224.0 230.3

Total Assets $ 9,586.3 $ 8,937.6



Liabilities and Shareholders' Equity

Accounts Payable and Accrued Expenses $ 164.1 $ 147.3

Debt

Commercial paper and borrowings under bank credit 20.7 23.6 facilities

Recourse 6,029.8 5,329.0

6,050.5 5,352.6

Lease Obligations (as lessee)

Operating leases 292.1 348.6

Finance leases - 33.3

292.1 381.9



Deferred Income Taxes 977.7 962.8

Other Liabilities 125.0 135.6

Total Liabilities 7,609.4 6,980.2

Total Shareholders' Equity 1,976.9 1,957.4

Total Liabilities and Shareholders' Equity $ 9,586.3 $ 8,937.6

GATX CORPORATION AND SUBSIDIARIES

SEGMENT DATA (UNAUDITED)

Three Months Ended September 30, 2021

(In millions)

Rail

North America

Rail International

Portfolio Management

Other

GATX Consolidated

Revenues

Lease revenue

$

200.4

$

68.8

$

8.2

$

6.5

$

283.9

Marine operating revenue

-

-

5.0

-

5.0

Other revenue

19.4

2.7

0.1

2.4

24.6

Total Revenues

219.8

71.5

13.3

8.9

313.5

Expenses

Maintenance expense

58.9

14.0

-

1.3

74.2

Marine operating expense

-

-

3.7

-

3.7

Depreciation expense

64.8

18.5

4.9

2.9

91.1

Operating lease expense

9.0

-

-

-

9.0

Other operating expense

6.6

1.8

0.6

0.7

9.7

Total Expenses

139.3

34.3

9.2

4.9

187.7

Other Income (Expense)

Net gain on asset dispositions

20.2

0.9

0.6

0.2

21.9

Interest expense, net

(32.9

)

(10.9

)

(4.5

)

(1.5

)

(49.8

)

Other (expense) income

(1.1

)

(0.2

)

2.0

(1.0

)

(0.3

)

Share of affiliates' pre-tax (loss) income

(0.2

)

-

4.0

-

3.8

Segment profit

$

66.5

$

27.0

$

6.2

$

1.7

$

101.4

Less:

Selling, general and administrative expense

45.9

Income taxes (includes $1.0 related to affiliates' earnings)

15.4

Net income from continuing operations

$

40.1

Discontinued operations, net of taxes

Net income from discontinued operations, net of taxes

$

-

Gain on sale of discontinued operations, net of taxes

-

Total discontinued operations, net of taxes

$

-

Net income

$

40.1

Selected Data:

Investment volume

$

178.9

$

40.9

$

-

$

10.0

$

229.8

Net Gain on Asset Dispositions

Asset Remarketing Income:

Net gains on disposition of owned assets

$

14.4

$

0.3

$

-

$

0.2

$

14.9

Residual sharing income

0.2

-

0.6

-

0.8

Non-remarketing net gains (1)

5.6

0.6

-

-

6.2

$

20.2

$

0.9

$

0.6

$

0.2

$

21.9

__________

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

GATX CORPORATION AND SUBSIDIARIES

SEGMENT DATA (UNAUDITED)

Three Months Ended September 30, 2021

(In millions)

Rail Rail Portfolio Other GATX North International Management Consolidated America

Revenues

Lease revenue $ 200.4 $ 68.8 $ 8.2 $ 6.5 $ 283.9

Marineoperating - - 5.0 - 5.0 revenue

Other revenue 19.4 2.7 0.1 2.4 24.6

Total Revenues 219.8 71.5 13.3 8.9 313.5

Expenses

Maintenance 58.9 14.0 - 1.3 74.2 expense

Marineoperating - - 3.7 - 3.7 expense

Depreciation 64.8 18.5 4.9 2.9 91.1 expense

Operating lease 9.0 - - - 9.0 expense

Other operating 6.6 1.8 0.6 0.7 9.7 expense

Total Expenses 139.3 34.3 9.2 4.9 187.7

Other Income (Expense)

Net gain onasset 20.2 0.9 0.6 0.2 21.9 dispositions

Interest (32.9 ) (10.9 ) (4.5 ) (1.5 ) (49.8 ) expense, net

Other (expense) (1.1 ) (0.2 ) 2.0 (1.0 ) (0.3 ) income

Share ofaffiliates' (0.2 ) - 4.0 - 3.8 pre-tax (loss) income

Segment profit $ 66.5 $ 27.0 $ 6.2 $ 1.7 $ 101.4

Less:

Selling, general and administrative expense 45.9

Income taxes (includes $1.0 related to affiliates' earnings) 15.4

Net income from continuing operations $ 40.1



Discontinued operations, net of taxes

Net income from discontinued operations, net of taxes $ -

Gain on sale of discontinued operations, net of taxes -

Total discontinued operations, net of taxes $ -



Net income $ 40.1



Selected Data:

Investment $ 178.9 $ 40.9 $ - $ 10.0 $ 229.8 volume



Net Gain onAsset Dispositions

AssetRemarketing Income:

Net gains ondisposition of $ 14.4 $ 0.3 $ - $ 0.2 $ 14.9 owned assets

Residual 0.2 - 0.6 - 0.8 sharing income

Non-remarketing 5.6 0.6 - - 6.2 net gains (1)

$ 20.2 $ 0.9 $ 0.6 $ 0.2 $ 21.9

__________

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

GATX CORPORATION AND SUBSIDIARIES

SEGMENT DATA (UNAUDITED)

Three Months Ended September 30, 2020

(In millions)

Rail

North America

Rail International

Portfolio Management

Other

GATX Consolidated

Revenues

Lease revenue

$

208.7

$

64.5

$

0.1

$

-

$

273.3

Marine operating revenue

-

-

5.0

-

5.0

Other revenue

23.4

2.6

0.1

-

26.1

Total Revenues

232.1

67.1

5.2

-

304.4

Expenses

Maintenance expense

63.2

13.5

-

-

76.7

Marine operating expense

-

-

3.6

-

3.6

Depreciation expense

65.0

17.1

1.3

-

83.4

Operating lease expense

12.3

-

-

-

12.3

Other operating expense

6.6

1.6

0.1

-

8.3

Total Expenses

147.1

32.2

5.0

-

184.3

Other Income (Expense)

Net gain on asset dispositions

7.9

0.5

0.5

-

8.9

Interest (expense) income, net

(35.7

)

(11.9

)

(3.2

)

2.2

(48.6

)

Other (expense) income

(1.1

)

0.5

-

(0.6

)

(1.2

)

Share of affiliates' pre-tax income

-

-

46.8

-

46.8

Segment profit

$

56.1

$

24.0

$

44.3

$

1.6

$

126.0

Less:

Selling, general and administrative expense

42.0

Income taxes (includes $24.0 related to affiliates' earnings)

35.8

Net income from continuing operations

$

48.2

Discontinued operations, net of taxes

Net income from discontinued operations, net of taxes

$

-

Gain on sale of discontinued operations, net of taxes

(0.3

)

Total discontinued operations, net of taxes

$

(0.3

)

Net income

$

47.9

Selected Data:

Investment volume

$

204.1

$

45.3

$

-

$

0.5

$

249.9

Net Gain on Asset Dispositions

Asset Remarketing Income:

Net gains on disposition of owned assets

$

7.8

$

0.2

$

-

$

-

$

8.0

Residual sharing income

0.1

-

0.5

-

0.6

Non-remarketing net gains (1)

-

0.3

-

-

0.3

$

7.9

$

0.5

$

0.5

$

-

$

8.9

__________

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

GATX CORPORATION AND SUBSIDIARIES

SEGMENT DATA (UNAUDITED)

Three Months Ended September 30, 2020

(In millions)

Rail Rail Portfolio Other GATX North International Management Consolidated America

Revenues

Lease revenue $ 208.7 $ 64.5 $ 0.1 $ - $ 273.3

Marineoperating - - 5.0 - 5.0 revenue

Other revenue 23.4 2.6 0.1 - 26.1

Total Revenues 232.1 67.1 5.2 - 304.4

Expenses

Maintenance 63.2 13.5 - - 76.7 expense

Marineoperating - - 3.6 - 3.6 expense

Depreciation 65.0 17.1 1.3 - 83.4 expense

Operating lease 12.3 - - - 12.3 expense

Other operating 6.6 1.6 0.1 - 8.3 expense

Total Expenses 147.1 32.2 5.0 - 184.3

Other Income (Expense)

Net gain onasset 7.9 0.5 0.5 - 8.9 dispositions

Interest(expense) (35.7 ) (11.9 ) (3.2 ) 2.2 (48.6 ) income, net

Other (expense) (1.1 ) 0.5 - (0.6 ) (1.2 ) income

Share ofaffiliates' - - 46.8 - 46.8 pre-tax income

Segment profit $ 56.1 $ 24.0 $ 44.3 $ 1.6 $ 126.0

Less:

Selling, general and administrative expense 42.0

Income taxes (includes $24.0 related to affiliates' earnings) 35.8

Net income from continuing operations $ 48.2



Discontinued operations, net of taxes

Net income from discontinued operations, net of taxes $ -

Gain on sale of discontinued operations, net of taxes (0.3 )

Total discontinued operations, net of taxes $ (0.3 )



Net income $ 47.9



Selected Data:

Investment $ 204.1 $ 45.3 $ - $ 0.5 $ 249.9 volume



Net Gain onAsset Dispositions

AssetRemarketing Income:

Net gains ondisposition of $ 7.8 $ 0.2 $ - $ - $ 8.0 owned assets

Residual 0.1 - 0.5 - 0.6 sharing income

Non-remarketing - 0.3 - - 0.3 net gains (1)

$ 7.9 $ 0.5 $ 0.5 $ - $ 8.9

__________

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

GATX CORPORATION AND SUBSIDIARIES

SEGMENT DATA (UNAUDITED)

Nine Months Ended September 30, 2021

(In millions)

Rail

North America

Rail International

Portfolio Management

Other

GATX Consolidated

Revenues

Lease revenue

$

611.4

$

204.7

$

19.8

$

16.2

$

852.1

Marine operating revenue

-

-

13.7

-

13.7

Other revenue

56.4

7.9

0.5

5.8

70.6

Total Revenues

667.8

212.6

34.0

22.0

936.4

Expenses

Maintenance expense

178.8

43.6

-

2.7

225.1

Marine operating expense

-

-

13.8

-

13.8

Depreciation expense

195.7

55.2

12.6

7.7

271.2

Operating lease expense

30.1

-

-

-

30.1

Other operating expense

22.6

5.5

1.2

2.0

31.3

Total Expenses

427.2

104.3

27.6

12.4

571.5

Other Income (Expense)

Net gain on asset dispositions

74.8

2.0

1.7

0.6

79.1

Interest expense, net

(102.5

)

(34.2

)

(12.0

)

(4.7

)

(153.4

)

Other (expense) income

(2.9

)

-

2.0

(8.8

)

(9.7

)

Share of affiliates' pre-tax (loss) income

(0.2

)

-

26.4

-

26.2

Segment profit (loss)

$

209.8

$

76.1

$

24.5

$

(3.3

)

$

307.1

Less:

Selling, general and administrative expense

140.8

Income taxes (includes $47.8 related to affiliates' earnings)

84.2

Net income from continuing operations

$

82.1

Discontinued operations, net of taxes

Net income from discontinued operations, net of taxes

$

-

Gain on sale of discontinued operations, net of taxes

-

Total discontinued operations, net of taxes

$

-

Net income

$

82.1

Selected Data:

Investment volume

$

394.4

$

126.1

$

353.0

$

19.7

$

893.2

Net Gain on Asset Dispositions

Asset Remarketing Income:

Net gains on disposition of owned assets

$

62.2

$

0.7

$

-

$

0.5

$

63.4

Residual sharing income

0.8

-

1.7

-

2.5

Non-remarketing net gains (1)

11.8

1.3

-

0.1

13.2

$

74.8

$

2.0

$

1.7

$

0.6

$

79.1

__________

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

GATX CORPORATION AND SUBSIDIARIES

SEGMENT DATA (UNAUDITED)

Nine Months Ended September 30, 2021

(In millions)

Rail Rail Portfolio Other GATX North International Management Consolidated America

Revenues

Lease revenue $ 611.4 $ 204.7 $ 19.8 $ 16.2 $ 852.1

Marineoperating - - 13.7 - 13.7 revenue

Other revenue 56.4 7.9 0.5 5.8 70.6

Total Revenues 667.8 212.6 34.0 22.0 936.4

Expenses

Maintenance 178.8 43.6 - 2.7 225.1 expense

Marineoperating - - 13.8 - 13.8 expense

Depreciation 195.7 55.2 12.6 7.7 271.2 expense

Operating lease 30.1 - - - 30.1 expense

Other operating 22.6 5.5 1.2 2.0 31.3 expense

Total Expenses 427.2 104.3 27.6 12.4 571.5

Other Income (Expense)

Net gain onasset 74.8 2.0 1.7 0.6 79.1 dispositions

Interest (102.5 ) (34.2 ) (12.0 ) (4.7 ) (153.4 ) expense, net

Other (expense) (2.9 ) - 2.0 (8.8 ) (9.7 ) income

Share ofaffiliates' (0.2 ) - 26.4 - 26.2 pre-tax (loss) income

Segment profit $ 209.8 $ 76.1 $ 24.5 $ (3.3 ) $ 307.1 (loss)

Less:

Selling, general and administrative expense 140.8

Income taxes (includes $47.8 related to affiliates' earnings) 84.2

Net income from continuing operations $ 82.1



Discontinued operations, net of taxes

Net income from discontinued operations, net of taxes $ -

Gain on sale of discontinued operations, net of taxes -

Total discontinued operations, net of taxes $ -



Net income $ 82.1



Selected Data:

Investment $ 394.4 $ 126.1 $ 353.0 $ 19.7 $ 893.2 volume



Net Gain onAsset Dispositions

AssetRemarketing Income:

Net gains ondisposition of $ 62.2 $ 0.7 $ - $ 0.5 $ 63.4 owned assets

Residual 0.8 - 1.7 - 2.5 sharing income

Non-remarketing 11.8 1.3 - 0.1 13.2 net gains (1)

$ 74.8 $ 2.0 $ 1.7 $ 0.6 $ 79.1

__________

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

GATX CORPORATION AND SUBSIDIARIES

SEGMENT DATA (UNAUDITED)

Nine Months Ended September 30, 2020

(In millions)

Rail

North America

Rail International

Portfolio Management

Other

GATX Consolidated

Revenues

Lease revenue

$

630.8

$

181.9

$

0.6

$

-

$

813.3

Marine operating revenue

-

-

11.6

-

11.6

Other revenue

72.5

6.5

0.4

-

79.4

Total Revenues

703.3

188.4

12.6

-

904.3

Expenses

Maintenance expense

206.5

38.3

-

-

244.8

Marine operating expense

-

-

10.9

-

10.9

Depreciation expense

193.0

48.4

4.0

-

245.4

Operating lease expense

38.1

-

-

-

38.1

Other operating expense

20.8

4.9

0.3

-

26.0

Total Expenses

458.4

91.6

15.2

-

565.2

Other Income (Expense)

Net gain on asset dispositions

39.9

0.8

1.6

-

42.3

Interest (expense) income, net

(103.5

)

(34.0

)

(9.1

)

5.1

(141.5

)

Other expense

(3.2

)

(5.7

)

-

(3.3

)

(12.2

)

Share of affiliates' pre-tax income

-

-

93.2

-

93.2

Segment profit

$

178.1

$

57.9

$

83.1

$

1.8

$

320.9

Less:

Selling, general and administrative expense

125.8

Income taxes (includes $33.1 related to affiliates' earnings)

62.7

Net income from continuing operations

$

132.4

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

$

133.5

Selected Data:

Investment volume

$

474.6

$

164.5

$

0.3

$

2.0

$

641.4

Net Gain on Asset Dispositions

Asset Remarketing Income:

Net gains on disposition of owned assets

$

39.1

$

0.2

$

0.1

$

-

$

39.4

Residual sharing income

0.3

-

1.5

-

1.8

Non-remarketing net gains (1)

0.5

0.6

-

-

1.1

$

39.9

$

0.8

$

1.6

$

-

$

42.3

__________

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

GATX CORPORATION AND SUBSIDIARIES

SEGMENT DATA (UNAUDITED)

Nine Months Ended September 30, 2020

(In millions)

Rail Rail Portfolio Other GATX North International Management Consolidated America

Revenues

Lease revenue $ 630.8 $ 181.9 $ 0.6 $ - $ 813.3

Marineoperating - - 11.6 - 11.6 revenue

Other revenue 72.5 6.5 0.4 - 79.4

Total Revenues 703.3 188.4 12.6 - 904.3

Expenses

Maintenance 206.5 38.3 - - 244.8 expense

Marineoperating - - 10.9 - 10.9 expense

Depreciation 193.0 48.4 4.0 - 245.4 expense

Operating lease 38.1 - - - 38.1 expense

Other operating 20.8 4.9 0.3 - 26.0 expense

Total Expenses 458.4 91.6 15.2 - 565.2

Other Income (Expense)

Net gain onasset 39.9 0.8 1.6 - 42.3 dispositions

Interest(expense) (103.5 ) (34.0 ) (9.1 ) 5.1 (141.5 ) income, net

Other expense (3.2 ) (5.7 ) - (3.3 ) (12.2 )

Share ofaffiliates' - - 93.2 - 93.2 pre-tax income

Segment profit $ 178.1 $ 57.9 $ 83.1 $ 1.8 $ 320.9

Less:

Selling, general and administrative expense 125.8

Income taxes (includes $33.1 related to affiliates' earnings) 62.7

Net income from continuing operations $ 132.4



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 $ 133.5



Selected Data:

Investment $ 474.6 $ 164.5 $ 0.3 $ 2.0 $ 641.4 volume



Net Gain onAsset Dispositions

AssetRemarketing Income:

Net gains ondisposition of $ 39.1 $ 0.2 $ 0.1 $ - $ 39.4 owned assets

Residual 0.3 - 1.5 - 1.8 sharing income

Non-remarketing 0.5 0.6 - - 1.1 net gains (1)

$ 39.9 $ 0.8 $ 1.6 $ - $ 42.3



__________

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

GATX CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION (UNAUDITED)

(In millions, except per share data)

Impact of Tax Adjustments and Other Items on Net Income(1)

Three Months Ended

September 30

Nine Months Ended

September 30

2021

2020

2021

2020

Net income (GAAP)

$

40.1

$

47.9

$

82.1

$

133.5

Less: Net (loss) income from discontinued operations (GAAP)

-

(0.3

)

-

1.1

Net income from continuing operations (GAAP)

$

40.1

$

48.2

$

82.1

$

132.4

Adjustments attributable to pre-tax income from continuing operations:

Debt extinguishment costs (2)

-

-

4.5

-

Total adjustments attributable to pre-tax income from continuing operations

$

-

$

-

$

4.5

$

-

Income taxes thereon, based on applicable effective tax rate

$

-

$

-

$

(1.1

)

$

-

Adjustments attributable to affiliates' earnings, net of taxes:

Income tax rate changes (3)

-

12.3

39.7

12.3

Total adjustments attributable to affiliates' earnings, net of taxes

$

-

$

12.3

$

39.7

$

12.3

Net income from continuing operations, excluding tax adjustments and other items (non-GAAP)

$

40.1

$

60.5

$

125.2

$

144.7

Net (loss) income from discontinued operations, excluding tax adjustments and other items (non-GAAP)

-

(0.3

)

-

1.1

Net income from consolidated operations, excluding tax adjustments and other items (non-GAAP)

$

40.1

$

60.2

$

125.2

$

145.8

GATX CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION (UNAUDITED)

(In millions, except per share data)

Impact of Tax Adjustmentsand Other Items on Net Income^(1)

Three Months Ended Nine Months Ended September 30 September 30

2021 2020 2021 2020

Net income (GAAP) $ 40.1 $ 47.9 $ 82.1 $ 133.5

Less: Net (loss) incomefrom discontinued - (0.3 ) - 1.1 operations (GAAP)

Net income from continuing $ 40.1 $ 48.2 $ 82.1 $ 132.4 operations (GAAP)

Adjustments attributable topre-tax income from continuing operations:

Debt extinguishment costs - - 4.5 - (2)

Total adjustmentsattributable to pre-tax $ - $ - $ 4.5 $ - income from continuing operations

Income taxes thereon, basedon applicable effective tax $ - $ - $ (1.1 ) $ - rate

Adjustments attributable toaffiliates' earnings, net of taxes:

Income tax rate changes (3) - 12.3 39.7 12.3

Total adjustmentsattributable to affiliates' $ - $ 12.3 $ 39.7 $ 12.3 earnings, net of taxes

Net income from continuingoperations, excluding tax $ 40.1 $ 60.5 $ 125.2 $ 144.7 adjustments and other items (non-GAAP)

Net (loss) income fromdiscontinued operations, - (0.3 ) - 1.1 excluding tax adjustments and other items (non-GAAP)

Net income fromconsolidated operations, $ 40.1 $ 60.2 $ 125.2 $ 145.8 excluding tax adjustments and other items (non-GAAP)

Impact of Tax Adjustments and Other Items on Diluted Earnings per Share(1)

Three Months Ended

September 30

Nine Months Ended

September 30

2021

2020

2021

2020

Diluted earnings per share from continuing operations (GAAP)

$

1.11

$

1.36

$

2.28

$

3.74

Diluted earnings per share from discontinued operations (GAAP)

-

(0.01

)

-

0.03

Diluted earnings per share from consolidated operations (GAAP)

$

1.11

$

1.35

$

2.28

$

3.77

Diluted earnings per share from continuing operations, excluding tax adjustments and other items (non-GAAP)

$

1.11

$

1.71

$

3.48

$

4.09

Diluted earnings per share from discontinued operations, excluding tax adjustments and other items (non-GAAP)

-

(0.01

)

-

0.03

Diluted earnings per share from consolidated operations, excluding tax adjustments and other items (non-GAAP)

$

1.11

$

1.70

$

3.48

$

4.12

Impact of Tax Adjustments andOther Items on Diluted Earnings per Share^(1)

Three Months Ended Nine Months Ended September 30 September 30

2021 2020 2021 2020

Diluted earnings per share from $ 1.11 $ 1.36 $ 2.28 $ 3.74 continuing operations (GAAP)

Diluted earnings per share from - (0.01 ) - 0.03 discontinued operations (GAAP)

Diluted earnings per share from $ 1.11 $ 1.35 $ 2.28 $ 3.77 consolidated operations (GAAP)



Diluted earnings per share fromcontinuing operations, excluding $ 1.11 $ 1.71 $ 3.48 $ 4.09 tax adjustments and other items(non-GAAP)

Diluted earnings per share fromdiscontinued operations, excluding - (0.01 ) - 0.03 tax adjustments and other items(non-GAAP)

Diluted earnings per share fromconsolidated operations, excluding $ 1.11 $ 1.70 $ 3.48 $ 4.12 tax adjustments and other items(non-GAAP)

(1)

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 management's 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.

(2)

Write-off of unamortized deferred financing costs associated with the early redemption of our $150 million 5.625% Senior Notes due 2066.

(3)

Deferred income tax adjustments due to an enacted corporate income tax rate increase in the United Kingdom in 2021 and the elimination of a previously announced corporate income tax rate reduction in the United Kingdom in 2020.

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(1) adjustments and other items, when analyzing financial performance because such amounts reflect the underlying operating results that are within management's 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.

(2) Write-off of unamortized deferred financing costs associated with the early redemption of our $150 million 5.625% Senior Notes due 2066.

Deferred income tax adjustments due to an enacted corporate income tax(3) rate increase in the United Kingdom in 2021 and the elimination of a previously announced corporate income tax rate reduction in the United Kingdom in 2020.

GATX CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION (UNAUDITED)

(In millions, except leverage)

9/30/2021

6/30/2021

3/31/2021

12/31/2020

9/30/2020

Total Assets, Excluding Cash, by Segment

Rail North America

$

5,976.8

$

5,916.3

$

5,896.5

$

5,887.5

$

5,801.5

Rail International

1,672.2

1,695.8

1,653.4

1,699.2

1,615.0

Portfolio Management

1,019.6

1,023.2

1,057.5

700.5

707.6

Other

351.5

347.1

348.8

357.8

106.4

Total Assets, excluding cash

$

9,020.1

$

8,982.4

$

8,956.2

$

8,645.0

$

8,230.5

Debt and Lease Obligations, Net of Unrestricted Cash

Unrestricted cash

$

(566.0

)

$

(417.9

)

$

(958.9

)

$

(292.2

)

$

(459.8

)

Commercial paper and bank credit facilities

20.7

17.9

19.6

23.6

13.5

Recourse debt

6,029.8

5,803.1

6,374.6

5,329.0

5,183.0

Operating lease obligations

292.1

298.7

328.0

348.6

368.0

Finance lease obligations

-

43.6

-

33.3

-

Total debt and lease obligations, net of unrestricted cash

$

5,776.6

$

5,745.4

$

5,763.3

$

5,442.3

$

5,104.7

Shareholders' Equity

$

1,976.9

$

1,971.4

$

1,960.0

$

1,957.4

$

1,930.0

Recourse Leverage (1)

2.9

2.9

2.9

2.8

2.6

_________

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

GATX CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION (UNAUDITED)

(In millions, except leverage)

9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020

Total Assets,Excluding Cash, bySegment

Rail North $ 5,976.8 $ 5,916.3 $ 5,896.5 $ 5,887.5 $ 5,801.5 America

Rail 1,672.2 1,695.8 1,653.4 1,699.2 1,615.0 International

Portfolio 1,019.6 1,023.2 1,057.5 700.5 707.6 Management

Other 351.5 347.1 348.8 357.8 106.4

Total Assets,excluding $ 9,020.1 $ 8,982.4 $ 8,956.2 $ 8,645.0 $ 8,230.5 cash

Debt and Lease Obligations, Net of Unrestricted Cash

Unrestricted $ (566.0 ) $ (417.9 ) $ (958.9 ) $ (292.2 ) $ (459.8 ) cash

Commercialpaper and 20.7 17.9 19.6 23.6 13.5 bank creditfacilities

Recourse debt 6,029.8 5,803.1 6,374.6 5,329.0 5,183.0

Operatinglease 292.1 298.7 328.0 348.6 368.0 obligations

Finance lease - 43.6 - 33.3 - obligations

Total debtand leaseobligations, $ 5,776.6 $ 5,745.4 $ 5,763.3 $ 5,442.3 $ 5,104.7 net ofunrestrictedcash

Shareholders' $ 1,976.9 $ 1,971.4 $ 1,960.0 $ 1,957.4 $ 1,930.0 Equity

Recourse 2.9 2.9 2.9 2.8 2.6 Leverage (1)

_________

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

Reconciliation of Total Assets to Total Assets, Excluding Cash

Total Assets

$

9,586.3

$

9,400.5

$

9,915.3

$

8,937.6

$

8,690.3

Less: cash

(566.2

)

(418.1

)

(959.1

)

(292.6

)

(459.8

)

Total Assets, excluding cash

$

9,020.1

$

8,982.4

$

8,956.2

$

8,645.0

$

8,230.5

Reconciliation of Total Assets to Total Assets, Excluding Cash

Total $ 9,586.3 $ 9,400.5 $ 9,915.3 $ 8,937.6 $ 8,690.3 Assets

Less: (566.2 ) (418.1 ) (959.1 ) (292.6 ) (459.8 ) cash

TotalAssets, $ 9,020.1 $ 8,982.4 $ 8,956.2 $ 8,645.0 $ 8,230.5 excludingcash

GATX CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION (UNAUDITED)

(Continued)

9/30/2021

6/30/2021

3/31/2021

12/31/2020

9/30/2020

Rail North America Statistics

Lease Price Index (LPI) (1)

Average renewal lease rate change

(8.1

)

%

(6.7

)

%

(18.1

)

%

(22.6

)

%

(29.4

)

%

Average renewal term (months)

32

29

30

34

29

Fleet Rollforward (2)

Beginning balance

102,144

102,903

103,745

103,363

102,891

Cars added

742

693

977

1,015

1,578

Cars scrapped

(947

)

(770

)

(1,002

)

(571

)

(623

)

Cars sold

(598

)

(682

)

(817

)

(62

)

(483

)

Ending balance

101,341

102,144

102,903

103,745

103,363

Utilization

99.2

%

98.5

%

97.8

%

98.1

%

98.2

%

Average active railcars

100,467

100,722

101,099

101,723

101,552

Boxcar Fleet

Ending balance

12,809

12,659

13,880

14,315

14,753

Utilization

98.4

%

97.1

%

97.1

%

95.8

%

94.5

%

Rail Europe Statistics

Fleet Rollforward

Beginning balance

26,727

26,498

26,343

25,956

25,705

Cars added

213

359

226

446

331

Cars scrapped/sold

(100

)

(130

)

(71

)

(59

)

(80

)

Ending balance

26,840

26,727

26,498

26,343

25,956

Utilization

98.1

%

98.4

%

98.2

%

98.1

%

98.2

%

Average active railcars

26,310

26,156

25,917

25,669

25,369

Rail North America Industry Statistics

Manufacturing Capacity Utilization Index (3)

75.2

%

75.6

%

74.6

%

74.7

%

72.3

%

Year-over-year Change in U.S. Carloadings (excl. intermodal) (4)

7.9

%

9.4

%

(2.6

)

%

(12.9

)

%

(15.3

)

%

Year-over-year Change in U.S. Carloadings (chemical) (4)

5.6

%

5.9

%

(3.8

)

%

(3.4

)

%

(5.1

)

%

Year-over-year Change in U.S. Carloadings (petroleum) (4)

(3.6

)

%

(4.3

)

%

(14.4

)

%

(14.0

)

%

(12.5

)

%

Production Backlog at Railcar Manufacturers (5)

n/a (6)

37,470

34,829

34,598

37,417

GATX CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION (UNAUDITED)

(Continued)

9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020

Rail NorthAmerica Statistics

Lease PriceIndex (LPI) (1)

Averagerenewal lease (8.1 ) % (6.7 ) % (18.1 ) % (22.6 ) % (29.4 ) %rate change

Averagerenewal term 32 29 30 34 29 (months)

FleetRollforward (2)

Beginning 102,144 102,903 103,745 103,363 102,891 balance

Cars added 742 693 977 1,015 1,578

Cars scrapped (947 ) (770 ) (1,002 ) (571 ) (623 )

Cars sold (598 ) (682 ) (817 ) (62 ) (483 )

Ending balance 101,341 102,144 102,903 103,745 103,363

Utilization 99.2 % 98.5 % 97.8 % 98.1 % 98.2 %

Average active 100,467 100,722 101,099 101,723 101,552 railcars

Boxcar Fleet

Ending balance 12,809 12,659 13,880 14,315 14,753

Utilization 98.4 % 97.1 % 97.1 % 95.8 % 94.5 %

Rail Europe Statistics

Fleet Rollforward

Beginning 26,727 26,498 26,343 25,956 25,705 balance

Cars added 213 359 226 446 331

Cars scrapped/ (100 ) (130 ) (71 ) (59 ) (80 ) sold

Ending balance 26,840 26,727 26,498 26,343 25,956

Utilization 98.1 % 98.4 % 98.2 % 98.1 % 98.2 %

Average active 26,310 26,156 25,917 25,669 25,369 railcars

Rail NorthAmerica Industry Statistics

ManufacturingCapacity 75.2 % 75.6 % 74.6 % 74.7 % 72.3 %Utilization Index (3)

Year-over-yearChange in U.S.Carloadings 7.9 % 9.4 % (2.6 ) % (12.9 ) % (15.3 ) %(excl. intermodal)(4)

Year-over-yearChange in U.S. 5.6 % 5.9 % (3.8 ) % (3.4 ) % (5.1 ) %Carloadings (chemical) (4)

Year-over-yearChange in U.S.Carloadings (3.6 ) % (4.3 ) % (14.4 ) % (14.0 ) % (12.5 ) %(petroleum)(4)

ProductionBacklog atRailcar n/a (6) 37,470 34,829 34,598 37,417 Manufacturers(5)

_________

(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)

Not available, not published as of the date of this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211021005361/en/

CONTACT: GATX Corporation Shari Hellerman Director, Investor Relations 312-621-4285 shari.hellerman@gatx.com