GlobeNewswire Inc | Oct 20, 2020 08:30AM EDT

October 20, 2020

-- Net income from continuing operations for the third quarter 2020 was $48.2 million or $1.36 per diluted share -- Rail North Americas fleet utilization remained high at 98.2% -- Portfolio Management realized an after-tax gain of $24.0 million or $0.68 per diluted share on a transaction involving the refinancing and sale of a group of aircraft spare engines at Rolls-Royce and Partners Finance affiliates (RRPF)

CHICAGO, Oct. 20, 2020 (GLOBE NEWSWIRE) -- GATX Corporation (NYSE:GATX) today reported 2020 third-quarter results. Results for the third quarter and nine months ending Sept. 30 are summarized below:

Three Months Ended Nine Months Ended September 30 September 30Per Diluted Share 2020 2019 2020 2019Income from Continuing $ 1.36 $ 1.03 $ 3.74 $ 3.79 OperationsIncome from Discontinued (0.01 ) 0.22 0.03 0.43 OperationsTotal $ 1.35 $ 1.25 $ 3.77 $ 4.22

2020 third-quarter net income from continuing operations was $48.2 million or $1.36 per diluted share, compared to net income from continuing operations of $37.2 million or $1.03 per diluted share in the third quarter of 2019. Net income from continuing operations for the first nine months of 2020 was $132.4 million or $3.74 per diluted share, compared to $138.7 million or $3.79 per diluted share in the prior year period. 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. The 2019 year-to-date results include a net deferred tax benefit of $2.8 million or $0.07 per diluted share related to an enacted foreign 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.

Despite continued challenges in our markets, GATX performed well in the third quarter," said Brian A. Kenney, president and chief executive officer of GATX. Rail North Americas fleet utilization remained high at 98.2% and our renewal success rate was 58.1% during the quarter. While absolute lease rates were flat to slightly higher for most car types compared to the second quarter, the North American railcar leasing market remains negatively affected by a persistent oversupply of railcars and weakness in certain marketsexacerbated by COVID-19s economic impact. Consequently, GATXs Lease Price Index was negative 29.4% during the third quarter. Despite higher fleet churn as a result of our lower renewal success, our maintenance cost performance was better than expected due to continued efficiency gains and lower than anticipated railroad and boxcar repairs during the quarter.

Rail International continues to perform well. GATX Rail Europe's fleet utilization remained high at 98.2% and renewal lease rates for most car types increased slightly versus the expiring rates. GATX Rail Indias fleet utilization is 100% and its fleet growth trajectory is resuming absent further COVID-19 disruptions.

"In Portfolio Management, our Rolls-Royce and Partners Finance affiliates benefited from a large gain on a transaction involving the refinancing and sale of a group of aircraft spare engines. RRPF operations remain challenged by the severe drop in demand for global air travel, particularly on international and other long-haul routes."

Mr. Kenney concluded, The global economic recovery remains tenuous due to a potential COVID-19 resurgence. In light of this uncertainty, we remain focused on keeping our employees safe, continuing our excellent commercial and operational execution, and pursuing attractively-priced growth opportunities for our shareholders.

RAIL NORTH AMERICA Rail North America reported segment profit of $56.1 million in the third quarter of 2020, compared to $60.9 million in the third quarter of 2019. Lower segment profit was primarily a result of lower lease revenue, partially offset by higher gains on asset dispositions. Year to date, Rail North America reported segment profit of $178.1 million, compared to $215.1 million in the same period of 2019. The decline in year-to-date 2020 results was predominantly driven by lower lease revenue.

At Sept. 30, 2020, Rail North Americas wholly owned fleet was comprised of over 118,100 cars, including approximately 14,750 boxcars. The following fleet statistics and performance discussion exclude the boxcar fleet.

Fleet utilization was 98.2% at the end of the third quarter, compared to 98.7% at the end of the prior quarter and 99.2% at the end of the third quarter of 2019. During the third quarter, the renewal lease rate change of the GATX Lease Price Index (LPI) was negative 29.4%. This compares to negative 28.0% in the prior quarter and negative 7.7% in the third quarter of 2019. The average lease renewal term for all cars included in the LPI during the third quarter was 29 months, compared to 31 months in the prior quarter and 40 months in the third quarter of 2019. Rail North Americas investment volume during the third quarter was $204.1 million.

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 INTERNATIONAL Rail Internationals segment profit was $24.0 million in the third quarter of 2020, compared to $19.9 million in the third quarter of 2019. Higher segment profit was predominately driven by more railcars on lease. Rail International reported segment profit of $57.9 million year-to-date 2020, compared to $56.0 million for the same period of 2019. Year-to-date results were favorably impacted by more railcars on lease and negatively impacted by changes in foreign currency exchange rates.

At Sept. 30, 2020, GATX Rail Europes (GRE) fleet consisted of approximately 26,000 cars. Utilization was 98.2%, compared to 98.4% at the end of the prior quarter and 99.4% at the end of the third quarter of 2019. Additional fleet statistics for GRE are provided on the last page of this press release.

PORTFOLIO MANAGEMENT Portfolio Management reported segment profit of $44.3 million in the third quarter of 2020, compared to $10.7 million in the third quarter of 2019. Segment profit year-to-date 2020 was $83.1 million, compared to $34.9 million for the same period of 2019. Favorable results in the comparative periods were predominantly driven by higher remarketing income at 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. In the third quarter 2020, GATX recorded final post-closing adjustments of $0.3 million after-tax related to the sale. Results for discontinued operations are summarized below:

(Income per diluted share) Three Months Ended Nine Months Ended September 30 September 30Discontinued Operations 2020 2019 2020 2019Operations, net of taxes $ ? $ 0.22 $ (0.06 ) $ 0.43 Gain on sale of ASC, net of taxes (0.01 ) ? 0.09 ? Total Discontinued Operations $ (0.01 ) $ 0.22 $ 0.03 $ 0.43

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 121 years. GATX has been headquartered in Chicago, Illinois since its founding in 1898. For more information, please visit the Companys website at www.gatx.com.

TELECONFERENCE INFORMATION GATX Corporation will host a teleconference to discuss 2020 third-quarter results. Call details are as follows:

Tuesday, October 20, 2020 11 a.m. Eastern Time Domestic 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: 6388397

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. 20, 2020.

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, 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 where we have a concentrated investment exposure * financial and operational risks associated with long-term railcar purchase commitments, * the severity and duration of the including increased costs due to global COVID-19 pandemic, including tariffs or trade disputes impacts of the pandemic and of * reduced opportunities to businesses? and governments? responses generate asset remarketing to the pandemic on our personnel, income operations, commercial activity, * inability to successfully supply chain, the demand for our consummate and manage ongoing assets, the value of our assets and acquisition and divestiture our liquidity activities * exposure to damages, fines, criminal * operational and financial risks and civil penalties, and reputational related to our affiliate harm arising from a negative outcome investments, including the in litigation, including claims Rolls-Royce & Partners Finance arising from an accident involving our joint ventures, and the railcars and other transportation durability and reliability of assets aircraft engines * inability to maintain our * fluctuations in foreign exchange transportation assets on lease at rates satisfactory rates due to oversupply * failure to successfully of assets in the market or other negotiate collective bargaining changes in supply and demand agreements with the unions * a significant decline in customer representing a substantial demand for our assets or services, portion of our employees including as a result 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 + declines in harvest or production in our credit ratings, or volumes increases in our financing costs + adverse changes in the price of, * uncertainty relating to the or demand for, commodities LIBOR calculation process and + changes in railroad operations or potential phasing out of LIBOR efficiency after 2021 + changes in railroad pricing and * competitive factors in our service offerings, including those primary markets, including related to "precision scheduled competitors with a significantly railroading" lower cost of capital than GATX + changes in supply chains * risks related to our + availability of pipelines, trucks, international operations and and other alternative modes of expansion into new geographic transportation markets, including the inability + changes in conditions affecting to access railcar supply and the the aviation industry, including imposition of new or additional geographic exposure and customer tariffs, quotas, or trade concentrations barriers + other operational or commercial * changes in, or failure to comply needs or decisions of our with, laws, rules, and customers regulations + customers' desire to buy, rather * inability to obtain than lease, our transportation cost-effective insurance assets * environmental remediation costs * higher costs associated with increased * potential obsolescence of our assignments of our transportation assets assets following non-renewal of * inadequate allowances to cover leases, customer defaults, and credit losses in our portfolio compliance maintenance programs or * operational, functional and other maintenance initiatives regulatory risks associated with severe weather events, climate change and natural disasters * inability to maintain and secure our information technology infrastructure from cybersecurity threats and related disruption of our business

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

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

Three Months Ended Nine Months Ended September 30 September 30 2020 2019 2020 2019Revenues Lease revenue $ 273.3 $ 270.5 $ 813.3 $ 816.8 Marine operating revenue 5.0 1.9 11.6 4.4 Other revenue 26.1 26.4 79.4 80.4 Total Revenues 304.4 298.8 904.3 901.6 Expenses Maintenance expense 76.7 76.2 244.8 235.3 Marine operating expense 3.6 3.4 10.9 12.0 Depreciation expense 83.4 80.0 245.4 240.2 Operating lease expense 12.3 13.7 38.1 41.1 Other operating expense 8.3 7.7 26.0 23.5 Selling, general and 42.0 42.6 125.8 129.6 administrative expenseTotal Expenses 226.3 223.6 691.0 681.7 Other Income (Expense) Net gain on asset dispositions 8.9 5.1 42.3 46.9 Interest expense, net (48.6 ) (44.7 ) (141.5 ) (135.3 )Other expense (1.2 ) (1.7 ) (12.2 ) (5.3 )Income before Income Taxes and 37.2 33.9 101.9 126.2 Share of Affiliates? EarningsIncome taxes (11.8 ) (9.5 ) (29.6 ) (31.1 )Share of affiliates? earnings, 22.8 12.8 60.1 43.6 net of taxesNet Income from Continuing $ 48.2 $ 37.2 $ 132.4 $ 138.7 Operations Discontinued Operations, Net of TaxesNet income (loss) fromdiscontinued operations, net of $ ? $ 7.9 $ (2.2 ) $ 15.9 taxes(Loss) gain on sale ofdiscontinued operations, net of (0.3 ) ? 3.3 ? taxesTotal Discontinued Operations, $ (0.3 ) $ 7.9 $ 1.1 $ 15.9 Net of Taxes Net Income $ 47.9 $ 45.1 $ 133.5 $ 154.6 Share Data Basic earnings per share from $ 1.38 $ 1.05 $ 3.79 $ 3.86 continuing operationsBasic earnings per share from (0.01 ) 0.23 0.03 0.44 discontinued operationsBasic earnings per share from $ 1.37 $ 1.28 $ 3.82 $ 4.30 consolidated operationsAverage number of common shares 35.0 35.4 34.9 35.9 Diluted earnings per share from $ 1.36 $ 1.03 $ 3.74 $ 3.79 continuing operationsDiluted earnings per share from (0.01 ) 0.22 0.03 0.43 discontinued operationsDiluted earnings per share from $ 1.35 $ 1.25 $ 3.77 $ 4.22 consolidated operationsAverage number of common shares 35.4 36.0 35.4 36.6 and common share equivalents Dividends declared per common $ 0.48 $ 0.46 $ 1.44 $ 1.38 share

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

September December 31 30 2020 2019Assets Cash and Cash Equivalents $ 459.8 $ 151.0 Receivables Rent and other receivables 70.6 65.9 Finance leases (as lessor) 63.3 90.3 Less: allowance for losses (6.2 ) (6.2 ) 127.7 150.0 Operating Assets and Facilities 10,070.2 9,523.5 Less: allowance for depreciation (3,226.0 ) (3,066.2 ) 6,844.2 6,457.3 Lease Assets (as lessee) Right-of-use assets, net of accumulated depreciation 364.3 411.7 Finance leases, net of accumulated depreciation ? 8.9 364.3 420.6 Investments in Affiliated Companies 582.5 512.6 Goodwill 84.2 81.5 Other Assets 227.6 221.0 Assets of Discontinued Operations ? 291.1 Total Assets $ 8,690.3 $ 8,285.1 Liabilities and Shareholders? Equity Accounts Payable and Accrued Expenses $ 139.2 $ 119.4 Debt Commercial paper and borrowings under bank credit 13.5 15.8 facilitiesRecourse 5,183.0 4,780.4 5,196.5 4,796.2 Lease Obligations (as lessee) Operating leases 368.0 429.4 Finance leases ? 7.9 368.0 437.3 Deferred Income Taxes 936.4 888.5 Other Liabilities 120.2 139.1 Liabilities of Discontinued Operations ? 69.5 Total Liabilities 6,760.3 6,450.0 Total Shareholders? Equity 1,930.0 1,835.1 Total Liabilities and Shareholders? Equity $ 8,690.3 $ 8,285.1

GATX CORPORATION AND SUBSIDIARIESSEGMENT DATA (UNAUDITED)Three Months Ended September 30, 2020 (In millions)

Rail Rail Portfolio GATX North International Management Other Consolidated AmericaRevenues Lease revenue $ 208.7 $ 64.5 $ 0.1 $ ? $ 273.3 Marineoperating ? ? 5.0 ? 5.0 revenueOther 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 expenseMarineoperating ? ? 3.6 ? 3.6 expenseDepreciation 65.0 17.1 1.3 ? 83.4 expenseOperating lease 12.3 ? ? ? 12.3 expenseOther operating 6.6 1.6 0.1 ? 8.3 expenseTotal Expenses 147.1 32.2 5.0 ? 184.3 Other Income (Expense)Net gain onasset 7.9 0.5 0.5 ? 8.9 dispositionsInterest(expense) (35.7 ) (11.9 ) (3.2 ) 2.2 (48.6 )income, netOther (expense) (1.1 ) 0.5 ? (0.6 ) (1.2 )incomeShare ofaffiliates' ? ? 46.8 ? 46.8 pre-tax incomeSegment 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 discontinuing operations, net of taxes $ ? Loss 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 DispositionsAssetRemarketing Income:Net gains ondisposition of $ 7.8 $ 0.2 $ ? $ ? $ 8.0 owned assetsResidual 0.1 ? 0.5 ? 0.6 sharing incomeNon-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 SUBSIDIARIESSEGMENT DATA (UNAUDITED)Three Months Ended September 30, 2019 (In millions)

Rail Rail Portfolio GATX North International Management Other Consolidated AmericaRevenues Lease revenue $ 214.6 $ 55.6 $ 0.3 $ ? $ 270.5 Marineoperating ? ? 1.9 ? 1.9 revenueOther revenue 23.9 2.4 0.1 ? 26.4 Total Revenues 238.5 58.0 2.3 ? 298.8 Expenses Maintenance 64.0 12.2 ? ? 76.2 expenseMarineoperating ? ? 3.4 ? 3.4 expenseDepreciation 63.9 14.5 1.6 ? 80.0 expenseOperating lease 13.7 ? ? ? 13.7 expenseOther operating 6.2 1.4 0.1 ? 7.7 expenseTotal Expenses 147.8 28.1 5.1 ? 181.0 Other Income (Expense)Net gain onasset 4.3 0.3 0.5 ? 5.1 dispositionsInterest(expense) (33.1 ) (10.2 ) (2.8 ) 1.4 (44.7 )income, netOther expense (1.0 ) (0.1 ) ? (0.6 ) (1.7 )Share ofaffiliates' ? ? 15.8 ? 15.8 pre-tax incomeSegment profit $ 60.9 $ 19.9 $ 10.7 $ 0.8 $ 92.3 Less: Selling, general and administrative expense 42.6 Income taxes (includes $3.0 related to affiliates' earnings) 12.5 Net income from continuing operations $ 37.2 Discontinued operations, net of taxes Net income from discontinued operations, net of taxes $ 7.9 Gain on sale of discontinued operations, net of taxes ? Total discontinued operations, net of taxes $ 7.9 Net income $ 45.1 Selected Data: Investment $ 138.1 $ 51.8 $ ? $ 0.9 $ 190.8 volume Net Gain onAsset DispositionsAssetRemarketing Income:Net gains ondisposition of $ 4.4 $ ? $ ? $ ? $ 4.4 owned assetsResidual 0.1 ? 0.5 ? 0.6 sharing incomeNon-remarketing (0.2 ) 0.3 ? ? 0.1 net gains (1) $ 4.3 $ 0.3 $ 0.5 $ ? $ 5.1

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

GATX CORPORATION AND SUBSIDIARIESSEGMENT DATA (UNAUDITED)Nine Months Ended September 30, 2020(In millions)

Rail Rail Portfolio GATX North International Management Other Consolidated AmericaRevenues Lease revenue $ 630.8 $ 181.9 $ 0.6 $ ? $ 813.3 Marineoperating ? ? 11.6 ? 11.6 revenueOther 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 expenseMarineoperating ? ? 10.9 ? 10.9 expenseDepreciation 193.0 48.4 4.0 ? 245.4 expenseOperating lease 38.1 ? ? ? 38.1 expenseOther operating 20.8 4.9 0.3 ? 26.0 expenseTotal Expenses 458.4 91.6 15.2 ? 565.2 Other Income (Expense)Net gain onasset 39.9 0.8 1.6 ? 42.3 dispositionsInterest(expense) (103.5 ) (34.0 ) (9.1 ) 5.1 (141.5 )income, netOther expense (3.2 ) (5.7 ) ? (3.3 ) (12.2 )Share ofaffiliates' ? ? 93.2 ? 93.2 pre-tax incomeSegment 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 DispositionsAssetRemarketing Income:Net gains ondisposition of $ 39.1 $ 0.2 $ 0.1 $ ? $ 39.4 owned assetsResidual 0.3 ? 1.5 ? 1.8 sharing incomeNon-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 SUBSIDIARIESSEGMENT DATA (UNAUDITED)Nine Months Ended September 30, 2019(In millions)

Rail Rail Portfolio GATX North International Management Other Consolidated AmericaRevenues Lease revenue $ 654.3 $ 161.7 $ 0.8 $ ? $ 816.8 Marineoperating ? ? 4.4 ? 4.4 revenueOther revenue 73.7 6.2 0.5 ? 80.4 Total Revenues 728.0 167.9 5.7 ? 901.6 Expenses Maintenance 199.8 35.5 ? ? 235.3 expenseMarineoperating ? ? 12.0 ? 12.0 expenseDepreciation 192.6 42.7 4.9 ? 240.2 expenseOperating lease 41.1 ? ? ? 41.1 expenseOther operating 19.0 4.2 0.3 ? 23.5 expenseTotal Expenses 452.5 82.4 17.2 ? 552.1 Other Income (Expense)Net gain onasset 44.6 1.2 1.1 ? 46.9 dispositionsInterest(expense) (101.4 ) (30.2 ) (8.3 ) 4.6 (135.3 )income, netOther expense (3.6 ) (0.5 ) ? (1.2 ) (5.3 )Share ofaffiliates' ? ? 53.6 ? 53.6 pre-tax incomeSegment profit $ 215.1 $ 56.0 $ 34.9 $ 3.4 $ 309.4 Less: Selling, general and administrative expense 129.6 Income taxes (includes $10.0 related to affiliates' earnings) 41.1 Net income from continuing operations $ 138.7 Discontinued operations, net of taxes Net income from discontinued operations, net of taxes $ 15.9 Gain on sale of discontinued operations, net of taxes ? Total discontinued operations, net of taxes $ 15.9 Net income $ 154.6 Selected Data: Investment $ 342.4 $ 158.6 $ ? $ 2.8 $ 503.8 volume Net Gain onAsset DispositionsAssetRemarketing Income:Net gains ondisposition of $ 40.9 $ ? $ ? $ ? $ 40.9 owned assetsResidual 0.3 ? 1.1 ? 1.4 sharing incomeNon-remarketing 3.4 1.2 ? ? 4.6 net gains (1) $ 44.6 $ 1.2 $ 1.1 $ ? $ 46.9

__________ (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 Nine Months Ended September 30 September 30 2020 2019 2020 2019Net income (GAAP) $ 47.9 $ 45.1 $ 133.5 $ 154.6 Less: Net income from discontinued (0.3 ) 7.9 1.1 15.9 operations (GAAP)Net income from continuing $ 48.2 $ 37.2 $ 132.4 $ 138.7 operations (GAAP) Other income tax adjustments attributable to income from continuing operations:Income tax rate change enacted in ? ? ? (2.8 )Alberta, CanadaAdjustments attributable to affiliates' earnings, net of taxes:Income tax rate change enacted in 12.3 ? 12.3 ? the United KingdomNet income from continuingoperations, excluding tax $ 60.5 $ 37.2 $ 144.7 $ 135.9 adjustments and other items(non-GAAP)Net income from discontinuedoperations, excluding tax $ (0.3 ) $ 7.9 $ 1.1 $ 15.9 adjustments and other items(non-GAAP)Net income from consolidatedoperations, excluding tax $ 60.2 $ 45.1 $ 145.8 $ 151.8 adjustments and other items(non-GAAP)

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

Three Months Ended Nine Months Ended September 30 September 30 2020 2019 2020 2019Diluted earnings per sharefrom continuing operations $ 1.36 $ 1.03 $ 3.74 $ 3.79 (GAAP)Diluted earnings per sharefrom discontinued operations (0.01 ) 0.22 0.03 0.43 (GAAP)Diluted earnings per sharefrom consolidated operations $ 1.35 $ 1.25 $ 3.77 $ 4.22 (GAAP) Diluted earnings per sharefrom continuing operations, $ 1.71 $ 1.03 $ 4.09 $ 3.72 excluding tax adjustments andother items (non-GAAP)Diluted earnings per sharefrom discontinued operations, $ (0.01 ) $ 0.22 $ 0.03 $ 0.43 excluding tax adjustments andother items (non-GAAP)Diluted earnings per sharefrom consolidated operations, $ 1.70 $ 1.25 $ 4.12 $ 4.15 excluding tax adjustments andother items (non-GAAP)

(*) 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)

9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019Total Assets,Excluding Cash, bySegmentRail North $ 5,801.5 $ 5,700.2 $ 5,634.6 $ 5,632.4 $ 5,611.9 AmericaRail 1,615.0 1,534.2 1,447.7 1,462.8 1,368.4 InternationalPortfolio 707.6 675.1 656.5 637.0 637.5 ManagementOther 106.4 110.3 107.6 110.8 105.5 Discontinued ? ? 300.8 291.1 319.0 OperationsTotal Assets,excluding $ 8,230.5 $ 8,019.8 $ 8,147.2 $ 8,134.1 $ 8,042.3 cashDebt and Lease Obligations, Net of Unrestricted CashUnrestricted $ (459.8 ) $ (492.9 ) $ (570.7 ) $ (151.0 ) $ (48.6 )cashCommercialpaper and 13.5 5.9 275.5 15.8 112.0 bank creditfacilitiesRecourse debt 5,183.0 5,047.5 5,043.7 4,780.4 4,580.2 Operatinglease 368.0 372.3 399.3 432.3 440.3 obligationsFinance lease ? 31.8 ? 7.9 ? obligationsTotal debtand leaseobligations, 5,104.7 4,964.6 5,147.8 5,085.4 5,083.9 net ofunrestrictedcashShareholders? $ 1,930.0 $ 1,875.3 $ 1,831.0 $ 1,835.1 $ 1,786.5 EquityRecourse 2.6 2.6 2.8 2.8 2.8 Leverage (1)

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

Reconciliation of Total Assets to Total Assets, Excluding CashTotal $ 8,690.3 $ 8,512.7 $ 8,717.9 $ 8,285.1 $ 8,090.9 AssetsLess: (459.8 ) (492.9 ) (570.7 ) (151.0 ) (48.6 )cashTotalAssets, $ 8,230.5 $ 8,019.8 $ 8,147.2 $ 8,134.1 $ 8,042.3 excludingcash

GATX CORPORATION AND SUBSIDIARIESSUPPLEMENTAL INFORMATION (UNAUDITED)(Continued)

9/30/2020 6/30/2020 3/31/2020 12/31/ 9/30/2019 2019Rail North America StatisticsLease Price Index (LPI) (1)Average renewal (29.4 )% (28.0 ) (11.6 ) (9.1 ) (7.7 )lease rate change % % % %Average renewal 29 31 31 37 40 term (months)Fleet Rollforward (2)Beginning balance 102,891 102,558 102,845 103,255 103,554 Cars added 1,578 1,220 883 965 902 Cars scrapped (623 ) (570 ) (389 ) (620 ) (513 )Cars sold (483 ) (317 ) (781 ) (755 ) (688 )Ending balance 103,363 102,891 102,558 102,845 103,255 Utilization 98.2 % 98.7 % 99.0 % 99.3 % 99.2 %Average active 101,552 101,600 101,668 102,309 102,653 railcarsBoxcar Fleet Ending balance 14,753 14,936 15,026 15,264 15,803 Utilization 94.5 % 94.6 % 94.6 % 95.0 % 93.5 %Rail Europe StatisticsFleet Rollforward Beginning balance 25,705 25,352 24,561 24,211 23,967 Cars added 331 423 871 416 325 Cars scrapped/sold (80 ) (70 ) (80 ) (66 ) (81 )Ending balance 25,956 25,705 25,352 24,561 24,211 Utilization 98.2 % 98.4 % 98.5 % 99.3 % 99.4 %Average active 25,369 25,100 24,622 24,216 23,877 railcarsRail North America Industry StatisticsManufacturingCapacity 71.5 % 68.7 % 73.5 % 77.1 % 77.4 %Utilization Index(3)Year-over-yearChange in U.S. (15.3 )% (15.9 ) (6.3 ) (4.9 ) (3.8 )Carloadings (excl. % % % %intermodal) (4)Year-over-yearChange in U.S. (5.1 )% (5.0 ) 3.1 % (0.6 ) (0.2 )Carloadings % % %(chemical) (4)Year-over-yearChange in U.S. (12.5 )% (11.1 ) 3.6 % 12.2 % 16.6 %Carloadings %(petroleum) (4)Production Backlogat Railcar n/a (6) 39,612 46,330 51,295 58,127 Manufacturers (5)American Steamship Company StatisticsTotal Net TonsCarried (millions) ? 2.7 1.0 7.5 9.6 (7)

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(1) 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.(7) Total net tons carried for the second quarter of 2020 reflects volume through May 14, 2020, the date of the sale.