GlobeNewswire Inc | Jul 21, 2020 08:30AM EDT

July 21, 2020

-- Net income from continuing operations for the second quarter 2020 was $37.0 millionor $1.05 per diluted share -- Rail North Americas fleet utilization remained high at 98.7%

CHICAGO, July 21, 2020 (GLOBE NEWSWIRE) -- GATX Corporation (NYSE: GATX) today reported 2020 second-quarter results. 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. Results for the second quarter and six months ending June 30 are summarized below:

Three Months Ended Six Months Ended June 30 June 30Per Diluted Share 2020 2019 2020 2019Income from Continuing $ 1.05 $ 1.65 $ 2.38 $ 2.75 OperationsIncome from Discontinued 0.06 0.21 0.04 0.22 OperationsTotal $ 1.11 $ 1.86 $ 2.42 $ 2.97

2020 second quarter net income from continuing operations was $37.0 million or $1.05 per diluted share, compared to net income from continuing operations of $60.3 million or $1.65 per diluted share in the second quarter of 2019. Net income from continuing operations for the first six months of 2020 was $84.2 million or $2.38 per diluted share, compared to $101.5 million or $2.75 per diluted share in the prior year period. The 2019 second quarter and year-to-date results include a net deferred tax benefit of $2.8 million or $0.08 per diluted share related to an enacted foreign tax rate reduction. Details related to these items are provided in the attached Supplemental Information under Tax Adjustments and Other Items.

Net income from discontinued operations in the second quarter of 2020 was $2.3 million or $0.06 per diluted share, compared to $7.7 million or $0.21 per diluted share in the same period of 2019. Year to date, net income from discontinued operations was $1.4 million or $0.04 per diluted share, compared to $8.0 million or $0.22 per diluted share in the prior year period.

In the second quarter, COVID-19 and its effect on the global economy negatively impacted all of our business segments, said Brian A. Kenney, president and chief executive officer of GATX. Despite the difficult business conditions, our Rail North America team continued to effectively deploy railcars on lease and displace competitors, resulting in a renewal success rate of 71.8% and fleet utilization of 98.7% at quarter-end. However, as customers right-size their fleets, railcar lessors are competing aggressively to place both new deliveries and their existing idle railcars, resulting in significant pressure on lease rates. In the second quarter, the renewal lease rate change of GATXs Lease Price Index was negative 28% and the average renewal term was 31 months.

Rail International performed well. GATX Rail Europe continued to experience small lease renewal rate increases and fleet utilization remains strong at 98.4%. However, the pace of new railcar investments in both Europe and India was constrained due to pandemic-related shutdowns at railcar manufacturing facilities. In the Portfolio Management segment, our Rolls-Royce and Partners Finance affiliates produced solid financial results against a challenging backdrop in the global aviation industry.

Mr. Kenney added, Investment volume was over $210 million in the quarter. With a strong balance sheet, GATX continues to have the capacity and willingness to invest at attractive valuations.

Mr. Kenney concluded, Looking ahead, we expect pressure on lease rates, renewal activity, and asset utilization across our business segments as impacts from the COVID-19 pandemic continues. Given the highly uncertain global outlook and lack of near-term visibility, we are not reinstituting guidance for 2020 at this time.

RAIL NORTH AMERICARail North America reported segment profit of $50.0 million in the second quarter of 2020, compared to $85.8 million in the second quarter of 2019. Lower segment profit was primarily a result of lower gains on asset dispositions. Year to date, Rail North America reported segment profit of $122.0 million, compared to $154.2 million in the same period of 2019. The decline in year-to-date 2020 results was predominantly driven by lower lease revenue and lower gains on asset dispositions.

At June 30, 2020, Rail North Americas wholly owned fleet was comprised of approximately 117,800 cars, including approximately 15,000 boxcars. The following fleet statistics and performance discussion exclude the boxcar fleet.

Fleet utilization was 98.7% at the end of the second quarter, compared to 99.0% at the end of the prior quarter and 99.5% at the end of the second quarter of 2019. During the second quarter, the renewal lease rate change of the GATX Lease Price Index (LPI) was negative 28.0%. This compares to negative 11.6% in the prior quarter and negative 2.8% in the second quarter of 2019. The average lease renewal term for all cars included in the LPI during the second quarter was 31 months, compared to 31 months in the prior quarter and 40 months in the second quarter of 2019. Rail North Americas investment volume during the second quarter was $159.6 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 INTERNATIONALRail Internationals segment profit was $20.0 million in the second quarter of 2020, compared to $21.3 million in the second quarter of 2019. Rail International reported segment profit of $33.9 million year-to-date 2020, compared to $36.1 million for the same period of 2019. Results in the comparative periods were favorably impacted by more railcars on lease and negatively impacted by changes in foreign currency exchange rates.

At June 30, 2020, GATX Rail Europes (GRE) fleet consisted of approximately 25,700 cars. Utilization was 98.4%, compared to 98.5% at the end of the prior quarter and 98.9% at the end of the second quarter of 2019. Additional fleet statistics for GRE are provided on the last page of this press release.

PORTFOLIO MANAGEMENTPortfolio Management reported segment profit of $19.3 million in the second quarter of 2020, compared to $11.9 million in the second quarter of 2019. Segment profit year-to-date 2020 was $38.8 million, compared to $24.2 million for the same period of 2019. The increase in second quarter and year-to-date segment profit was due to higher marine operating revenue and higher share of affiliates earnings from the Rolls-Royce and Partners Finance affiliates resulting from increased remarketing income.

DISCONTINUED OPERATIONSGATX completed the sale of American Steamship Company (ASC) on May 14, 2020 for a purchase price of $260 million, subject to customary closing adjustments; adjustments are not expected to be material to GATXs overall financial position.

The ASC segment is therefore accounted for as a discontinued operation. Results for discontinued operations are summarized below:

(Income per diluted share) Three Months Ended Six Months Ended June 30 June 30Discontinued Operations 2020 2019 2020 2019Operations, net of taxes $ (0.04 ) $ 0.21 $ (0.06 ) $ 0.22 Gain on sale of ASC, net of taxes 0.10 ? 0.10 ? Total Discontinued Operations $ 0.06 $ 0.21 $ 0.04 $ 0.22

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 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 INFORMATIONGATX Corporation will host a teleconference to discuss 2020 second-quarter results. Call details are as follows:

Tuesday, July 21, 202011 a.m. Eastern TimeDomestic Dial-In: 1-800-458-4121International Dial-In: 1-786-789-4772Replay: 1-888-203-1112 or 1-719-457-0820 /Access Code: 7836635

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. Following the call, a replay will be available on the same site.

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 where we have a concentrated investment exposure * financial and operational risks associated with long-term railcar purchase commitments, including increased costs due * the severity and duration of the to tariffs or trade disputes global COVID-19 pandemic, including * reduced opportunities to impacts of the pandemic and of generate asset remarketing businesses? and governments? income responses to the pandemic on our * inability to successfully personnel, operations, commercial consummate and manage ongoing activity, supply chain, the demand acquisition and divestiture for our assets, the value of our activities assets and our liquidity * operational and financial risks * exposure to damages, fines, criminal related to our affiliate and civil penalties, and reputational investments, including the harm arising from a negative outcome Rolls-Royce & Partners Finance in litigation, including claims joint ventures, and the arising from an accident involving durability and reliability of our railcars and other transportation aircraft engines assets * fluctuations in foreign * inability to maintain our exchange rates transportation assets on lease at * failure to successfully satisfactory rates due to oversupply negotiate collective bargaining of assets in the market or other agreements with the unions changes in supply and demand representing a substantial * a significant decline in customer portion of our employees demand for our assets or services, * asset impairment charges we may including as a result of: be required to recognize + weak macroeconomic conditions * deterioration of conditions in + weak market conditions in our the capital markets, reductions customers' businesses in our credit ratings, or + declines in harvest or production increases in our financing volumes 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 primary markets, including those related to "precision competitors with a scheduled railroading" significantly lower cost of + changes in supply chains capital than GATX + availability of pipelines, * risks related to our trucks, and other alternative international operations and modes of transportation expansion into new geographic + changes in conditions affecting markets, including the the aviation industry, including inability to access railcar geographic exposure and customer supply and the imposition of concentrations new or additional tariffs, + other operational or commercial quotas, or trade barriers needs or decisions of our * changes in, or failure to customers comply with, laws, rules, and + customers' desire to buy, rather regulations than lease, our transportation * inability to obtain assets cost-effective insurance * higher costs associated with * environmental 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 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 CorporationShari HellermanDirector, Investor RelationsGATX Corporation312-621-4285shari.hellerman@gatx.com

Investor, corporate, financial, historical financial, and news release information may be found at www.gatx.com.

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

Three Months Ended Six Months Ended June 30 June 30 2020 2019 2020 2019Revenues Lease revenue $ 269.3 $ 272.9 $ 540.0 $ 546.3 Marine operating revenue 3.3 0.1 6.6 2.5 Other revenue 27.9 24.5 53.3 54.0 Total Revenues 300.5 297.5 599.9 602.8 Expenses Maintenance expense 82.3 78.2 168.1 159.1 Marine operating expense 3.2 4.0 7.3 8.6 Depreciation expense 81.6 80.3 162.0 160.2 Operating lease expense 12.5 13.7 25.8 27.4 Other operating expense 9.2 7.8 17.7 15.8 Selling, general and 43.4 43.0 83.8 87.0 administrative expenseTotal Expenses 232.2 227.0 464.7 458.1 Other Income (Expense) Net gain on asset dispositions 6.0 32.9 33.4 41.8 Interest expense, net (47.4 ) (45.5 ) (92.9 ) (90.6 )Other expense (3.0 ) (0.4 ) (11.0 ) (3.6 )Income before Income Taxes and 23.9 57.5 64.7 92.3 Share of Affiliates? EarningsIncome taxes (4.7 ) (13.3 ) (17.8 ) (21.6 )Share of affiliates? earnings, 17.8 16.1 37.3 30.8 net of taxesNet Income from Continuing $ 37.0 $ 60.3 $ 84.2 $ 101.5 Operations Discontinued Operations, Net of TaxesNet (loss) income fromdiscontinued operations, net of $ (1.3 ) $ 7.7 $ (2.2 ) $ 8.0 taxesGain on sale of discontinued 3.6 ? 3.6 ? operations, net of taxesTotal Discontinued Operations, $ 2.3 $ 7.7 $ 1.4 $ 8.0 Net of Taxes Net Income $ 39.3 $ 68.0 $ 85.6 $ 109.5 Share Data Basic earnings per share from $ 1.06 $ 1.68 $ 2.41 $ 2.80 continuing operationsBasic earnings per share from 0.06 0.21 0.04 0.22 discontinued operationsBasic earnings per share from $ 1.12 $ 1.89 $ 2.45 $ 3.02 consolidated operationsAverage number of common shares 34.9 36.0 34.9 36.2 Diluted earnings per share from $ 1.05 $ 1.65 $ 2.38 $ 2.75 continuing operationsDiluted earnings per share from 0.06 0.21 0.04 0.22 discontinued operationsDiluted earnings per share from $ 1.11 $ 1.86 $ 2.42 $ 2.97 consolidated operationsAverage number of common shares 35.4 36.7 35.4 36.9 and common share equivalents Dividends declared per common $ 0.48 $ 0.46 $ 0.96 $ 0.92 share

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

June 30 December 31 2020 2019Assets Cash and Cash Equivalents $ 492.9 $ 151.0 Receivables Rent and other receivables 71.4 65.9 Finance leases (as lessor) 64.9 90.3 Less: allowance for losses (6.1 ) (6.2 ) 130.2 150.0 Operating Assets and Facilities 9,784.1 9,523.5 Less: allowance for depreciation (3,155.7 ) (3,066.2 ) 6,628.4 6,457.3 Lease Assets (as lessee) Right-of-use assets, net of accumulated depreciation 372.1 411.7 Finance leases, net of accumulated depreciation 30.1 8.9 402.2 420.6 Investments in Affiliated Companies 551.4 512.6 Goodwill 81.7 81.5 Other Assets 225.9 221.0 Assets of Discontinued Operations ? 291.1 Total Assets $ 8,512.7 $ 8,285.1 Liabilities and Shareholders? Equity Accounts Payable and Accrued Expenses $ 145.7 $ 119.4 Debt Commercial paper and borrowings under bank credit 5.9 15.8 facilitiesRecourse 5,047.5 4,780.4 5,053.4 4,796.2 Lease Obligations (as lessee) Operating leases 372.3 429.4 Finance leases 31.8 7.9 404.1 437.3 Deferred Income Taxes 915.7 888.5 Other Liabilities 118.5 139.1 Liabilities of Discontinued Operations ? 69.5 Total Liabilities 6,637.4 6,450.0 Total Shareholders? Equity 1,875.3 1,835.1 Total Liabilities and Shareholders? Equity $ 8,512.7 $ 8,285.1

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

Rail Rail Portfolio GATX North International Management Other Consolidated AmericaRevenues Lease revenue $ 210.0 $ 59.1 $ 0.2 $ ? $ 269.3 Marineoperating ? ? 3.3 ? 3.3 revenueOther revenue 25.5 2.1 0.3 ? 27.9 Total Revenues 235.5 61.2 3.8 ? 300.5 Expenses Maintenance 70.4 11.9 ? ? 82.3 expenseMarineoperating ? ? 3.2 ? 3.2 expenseDepreciation 64.4 15.8 1.4 ? 81.6 expenseOperating lease 12.5 ? ? ? 12.5 expenseOther operating 7.6 1.5 0.1 ? 9.2 expenseTotal Expenses 154.9 29.2 4.7 ? 188.8 Other Income (Expense)Net gain onasset 5.2 0.2 0.6 ? 6.0 dispositionsInterest(expense) (34.5 ) (11.5 ) (3.0 ) 1.6 (47.4 )income, netOther expense (1.3 ) (0.7 ) ? (1.0 ) (3.0 )Share ofaffiliates' ? ? 22.6 ? 22.6 pre-tax incomeSegment profit $ 50.0 $ 20.0 $ 19.3 $ 0.6 $ 89.9 Less: Selling, general and administrative expense 43.4 Income taxes (includes $4.8 related to affiliates' earnings) 9.5 Net income from continuing operations $ 37.0 Discontinued operations, net of taxes Net loss from discontinued operations, net of taxes $ (1.3 )Gain on sale of discontinued operations, net of taxes 3.6 Total discontinued operations, net of taxes $ 2.3 Net income $ 39.3 Selected Data: Investment $ 159.6 $ 49.9 $ ? $ 1.0 $ 210.5 volume Net Gain onAsset DispositionsAssetRemarketing Income:Net gains ondisposition of $ 4.4 $ ? $ 0.1 $ ? $ 4.5 owned assetsResidual 0.1 ? 0.5 ? 0.6 sharing incomeNon-remarketing 0.7 0.2 ? ? 0.9 net gains (1) $ 5.2 $ 0.2 $ 0.6 $ ? $ 6.0

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(1) Includes net gains from scrapping of railcars.

GATX CORPORATION AND SUBSIDIARIESSEGMENT DATA (UNAUDITED)Three Months Ended June 30, 2019(In millions)

Rail Rail Portfolio GATX North International Management Other Consolidated AmericaRevenues Lease revenue $ 218.8 $ 53.9 $ 0.2 $ ? $ 272.9 Marineoperating ? ? 0.1 ? 0.1 revenueOther revenue 22.4 1.8 0.3 ? 24.5 Total Revenues 241.2 55.7 0.6 ? 297.5 Expenses Maintenance 67.0 11.2 ? ? 78.2 expenseMarineoperating ? ? 4.0 ? 4.0 expenseDepreciation 64.4 14.2 1.7 ? 80.3 expenseOperating lease 13.7 ? ? ? 13.7 expenseOther operating 6.4 1.3 0.1 ? 7.8 expenseTotal Expenses 151.5 26.7 5.8 ? 184.0 Other Income (Expense)Net gain onasset 32.1 0.5 0.3 ? 32.9 dispositionsInterest(expense) (34.1 ) (10.1 ) (2.8 ) 1.5 (45.5 )income, netOther expense (1.9 ) 1.9 ? (0.4 ) (0.4 )(income)Share ofaffiliates' ? ? 19.6 ? 19.6 pre-tax incomeSegment profit $ 85.8 $ 21.3 $ 11.9 $ 1.1 $ 120.1 Less: Selling, general and administrative expense 43.0 Income taxes (includes $3.5 related to affiliates' earnings) 16.8 Net income from continuing operations $ 60.3 Discontinued operations, net of taxes Net income from discontinued operations, net of taxes $ 7.7 Gain on sale of discontinued operations, net of taxes ? Total discontinued operations, net of taxes $ 7.7 Net income $ 68.0 Selected Data: Investment $ 105.3 $ 73.7 $ ? $ 1.2 $ 180.2 volume Net Gain onAsset DispositionsAssetRemarketing Income:Net gains ondisposition of $ 26.8 $ ? $ ? $ ? $ 26.8 owned assetsResidual 0.1 ? 0.3 ? 0.4 sharing incomeNon-remarketing 5.2 0.5 ? ? 5.7 net gains (1) $ 32.1 $ 0.5 $ 0.3 $ ? $ 32.9

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(1) Includes net gains from scrapping of railcars.

GATX CORPORATION AND SUBSIDIARIESSEGMENT DATA (UNAUDITED)Six Months Ended June 30, 2020(In millions)

RailNorth Rail Portfolio Other GATX America International Management ConsolidatedRevenues Lease revenue $ 422.1 $ 117.4 $ 0.5 $ ? $ 540.0 Marineoperating ? ? 6.6 ? 6.6 revenueOther revenue 49.1 3.9 0.3 ? 53.3 Total Revenues 471.2 121.3 7.4 ? 599.9 Expenses Maintenance 143.3 24.8 ? ? 168.1 expenseMarineoperating ? ? 7.3 ? 7.3 expenseDepreciation 128.0 31.3 2.7 ? 162.0 expenseOperating lease 25.8 ? ? ? 25.8 expenseOther operating 14.2 3.3 0.2 ? 17.7 expenseTotal Expenses 311.3 59.4 10.2 ? 380.9 Other Income (Expense)Net gain onasset 32.0 0.3 1.1 ? 33.4 dispositionsInterest(expense) (67.8 ) (22.1 ) (5.9 ) 2.9 (92.9 )income, netOther expense (2.1 ) (6.2 ) ? (2.7 ) (11.0 )Share ofaffiliates' ? ? 46.4 ? 46.4 pre-tax incomeSegment profit $ 122.0 $ 33.9 $ 38.8 $ 0.2 $ 194.9 Less: Selling, general and administrative expense 83.8 Income taxes (includes $9.1 related to affiliates' earnings) 26.9 Net income from continuing operations $ 84.2 Discontinued operations, net of taxes Net loss from discontinued operations, net of taxes $ (2.2 )Gain on sale of discontinued operations, net of taxes 3.6 Total discontinued operations, net of taxes $ 1.4 Net income $ 85.6 Selected Data: Investment $ 270.5 $ 119.2 $ 0.3 $ 1.5 $ 391.5 volume Net Gain onAsset DispositionsAssetRemarketing Income:Net gains ondisposition of $ 31.3 $ ? $ 0.1 $ ? $ 31.4 owned assetsResidual 0.2 ? 1.0 ? 1.2 sharing incomeNon-remarketing 0.5 0.3 ? ? 0.8 net gains (1) $ 32.0 $ 0.3 $ 1.1 $ ? $ 33.4

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(1) Includes net gains from scrapping of railcars.

GATX CORPORATION AND SUBSIDIARIESSEGMENT DATA (UNAUDITED)Six Months Ended June 30, 2019(In millions)

Rail North Portfolio Other GATX America Rail Management Consolidated InternationalSix MonthsEnded June 30, 2019Revenues Lease revenue $ 439.7 $ 106.1 $ 0.5 $ ? $ 546.3 Marineoperating ? ? 2.5 ? 2.5 revenueOther revenue 49.8 3.8 0.4 ? 54.0 Total Revenues 489.5 109.9 3.4 ? 602.8 Expenses Maintenance 135.8 23.3 ? ? 159.1 expenseMarineoperating ? ? 8.6 ? 8.6 expenseDepreciation 128.7 28.2 3.3 ? 160.2 expenseOperating lease 27.4 ? ? ? 27.4 expenseOther operating 12.8 2.8 0.2 ? 15.8 expenseTotal Expenses 304.7 54.3 12.1 ? 371.1 Other Income (Expense)Net gain onasset 40.3 0.9 0.6 ? 41.8 dispositionsInterest(expense) (68.3 ) (20.0 ) (5.5 ) 3.2 (90.6 )income, netOther expense (2.6 ) (0.4 ) ? (0.6 ) (3.6 )Share ofaffiliates' ? ? 37.8 ? 37.8 pre-tax incomeSegment profit $ 154.2 $ 36.1 $ 24.2 $ 2.6 $ 217.1 Less: Selling, general and administrative expense 87.0 Income taxes (includes $7.0 related to affiliates' earnings) 28.6 Net income from continuing operations $ 101.5 Discontinued operations, net of taxes Net income from discontinued operations, net of taxes $ 8.0 Gain on sale of discontinued operations, net of taxes ? Total discontinued operations, net of taxes $ 8.0 Net income $ 109.5 Selected Data: Investment $ 204.3 $ 106.8 $ ? $ 1.9 $ 313.0 volume Net Gain onAsset DispositionsAssetRemarketing Income:Net gains ondisposition of $ 36.5 $ ? $ ? $ ? $ 36.5 owned assetsResidual 0.2 ? 0.6 ? 0.8 sharing incomeNon-remarketing 3.6 0.9 ? ? 4.5 net gains (1) $ 40.3 $ 0.9 $ 0.6 $ ? $ 41.8

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(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 Six Months Ended June 30 June 30 2020 2019 2020 2019Net income (GAAP) $ 39.3 $ 68.0 $ 85.6 $ 109.5 Less: Net income from discontinued 2.3 7.7 1.4 8.0 operations (GAAP)Net income from continuing $ 37.0 $ 60.3 $ 84.2 $ 101.5 operations (GAAP) Other income tax adjustments attributable to income from continuing operations:Income tax rate change ? (2.8 ) ? (2.8 )Net income from continuingoperations, excluding tax $ 37.0 $ 57.5 $ 84.2 $ 98.7 adjustments and other items(non-GAAP)Net income from discontinuedoperations, excluding tax $ 2.3 $ 7.7 $ 1.4 $ 8.0 adjustments and other items(non-GAAP)Net income from consolidatedoperations, excluding tax $ 39.3 $ 65.2 $ 85.6 $ 106.7 adjustments and other items(non-GAAP)

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

Three Months Ended Six Months Ended June 30 June 30 2020 2019 2020 2019Diluted earnings per sharefrom continuing operations $ 1.05 $ 1.65 $ 2.38 $ 2.75 (GAAP)Diluted earnings per sharefrom discontinued operations 0.06 0.21 0.04 0.22 (GAAP)Diluted earnings per sharefrom consolidated operations $ 1.11 $ 1.86 $ 2.42 $ 2.97 (GAAP) Diluted earnings per sharefrom continuing operations, $ 1.05 $ 1.57 $ 2.38 $ 2.67 excluding tax adjustments andother items (non-GAAP)Diluted earnings per sharefrom discontinued operations, $ 0.06 $ 0.21 $ 0.04 $ 0.22 excluding tax adjustments andother items (non-GAAP)Diluted earnings per sharefrom consolidated operations, $ 1.11 $ 1.78 $ 2.42 $ 2.89 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)

6/30/2020 3/31/2020 12/31/2019 9/30/2019 6/30/2019Total Assets,Excluding Cash, bySegmentRail North $ 5,700.2 $ 5,634.6 $ 5,632.4 $ 5,611.9 $ 5,607.7 AmericaRail 1,534.2 1,447.7 1,462.8 1,368.4 1,404.1 InternationalPortfolio 675.1 656.5 637.0 637.5 626.6 ManagementOther 110.3 107.6 110.8 105.5 96.6 Discontinued ? 300.8 291.1 319.0 331.2 OperationsTotal Assets,excluding $ 8,019.8 $ 8,147.2 $ 8,134.1 $ 8,042.3 $ 8,066.2 cashDebt and LeaseObligations, Net of Unrestricted CashUnrestricted $ (492.9 ) $ (570.7 ) $ (151.0 ) $ (48.6 ) $ (286.6 )cashCommercialpaper and 5.9 275.5 15.8 112.0 26.0 bank creditfacilitiesRecourse debt 5,047.5 5,043.7 4,780.4 4,580.2 4,832.5 Operatinglease 372.3 399.3 432.3 440.3 454.5 obligationsFinance lease 31.8 ? 7.9 ? 10.6 obligationsTotal debtand leaseobligations, 4,964.6 5,147.8 5,085.4 5,083.9 5,037.0 net ofunrestrictedcashShareholders? $ 1,875.3 $ 1,831.0 $ 1,835.1 $ 1,786.5 $ 1,834.8 EquityRecourse 2.6 2.8 2.8 2.8 2.7 Leverage (1)

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

Reconciliation of Total Assets to Total Assets, Excluding CashTotal $ 8,512.7 $ 8,717.9 $ 8,285.1 $ 8,090.9 $ 8,353.1 AssetsLess: (492.9 ) (570.7 ) (151.0 ) (48.6 ) (286.9 )cashTotalAssets, $ 8,019.8 $ 8,147.2 $ 8,134.1 $ 8,042.3 $ 8,066.2 excludingcash

GATX CORPORATION AND SUBSIDIARIESSUPPLEMENTAL INFORMATION (UNAUDITED)(Continued)

6/30/2020 3/31/2020 12/31/2019 9/30/2019 6/30/2019Rail NorthAmerica StatisticsLease PriceIndex (LPI) (1)Averagerenewal lease (28.0 ) % (11.6 ) % (9.1 ) % (7.7 ) % (2.8 ) %rate changeAveragerenewal term 31 31 37 40 40 (months)FleetRollforward (2)Beginning 102,558 102,845 103,255 103,554 104,830 balanceCars added 1,220 883 965 902 661 Cars scrapped (570 ) (389 ) (620 ) (513 ) (377 ) Cars sold (317 ) (781 ) (755 ) (688 ) (1,560 ) Ending balance 102,891 102,558 102,845 103,255 103,554 Utilization 98.7 % 99.0 % 99.3 % 99.2 % 99.5 %Average active 101,600 101,668 102,309 102,653 104,089 railcarsBoxcar Fleet Ending balance 14,936 15,026 15,264 15,803 15,921 Utilization 94.6 % 94.6 % 95.0 % 93.5 % 94.1 %Rail Europe StatisticsFleet RollforwardBeginning 25,352 24,561 24,211 23,967 23,531 balanceCars added 423 871 416 325 491 Cars scrapped/ (70 ) (80 ) (66 ) (81 ) (55 ) soldEnding balance 25,705 25,352 24,561 24,211 23,967 Utilization 98.4 % 98.5 % 99.3 % 99.4 % 98.9 %Average active 25,100 24,622 24,216 23,877 23,480 railcarsRail NorthAmerica IndustryStatisticsManufacturingCapacity 68.6 % 73.5 % 77.1 % 77.4 % 77.7 %UtilizationIndex (3)Year-over-yearChange in U.S.Carloadings (15.9 ) % (6.3 ) % (4.9 ) % (3.8 ) % (2.9 ) %(excl.intermodal)(4)Year-over-yearChange in U.S. (5.0 ) % 3.1 % (0.6 ) % (0.2 ) % (0.1 ) %Carloadings(chemical) (4)Year-over-yearChange in U.S.Carloadings (11.1 ) % 3.6 % 12.2 % 16.6 % 23.2 %(petroleum)(4)ProductionBacklog atRailcar n/a (6) 46,330 51,295 58,127 69,227 Manufacturers(5)AmericanSteamship CompanyStatisticsTotal Net TonsCarried 2.7 1.0 7.5 9.6 8.7 (millions) (7)

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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) 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.