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GATX ANNOUNCES LOWER NET INCOME FOR SECOND QUARTER AND SIX MONTHS

 GATX ANNOUNCES LOWER NET INCOME FOR SECOND QUARTER AND SIX MONTHS
 CHICAGO, July 16 /PRNewswire/ -- GATX Corp. (NYSE: GMT) today reported that second quarter and six-month net income was down from 1991 levels, which was the second-highest year in the company's history.
 For the quarter ended June 30, 1992, net income was $16.5 million or $.68 per common share. Net income was 19.9 percent below last year's second quarter net income of $20.6 million or $.89 per common share.
 GATX earned $32.3 million for the first half of 1992 or $1.32 per common share before non-cash FASB adjustments of $42.9 million taken in the first quarter. This compares to earnings of $39.5 million or $1.69 per common share for the first half of 1991. Reflecting the adjustments for the implementation of FASB 106 and 109, GATX reported a loss of $10.6 million for the first half of 1992 or a loss of $0.89 per common share.
 Despite Decline GATX Achieves Advances in Margins and Cash Flow
 James J. Glasser, chairman of the board, president and chief executive officer, stated, "Results for the second quarter were reduced primarily for three reasons. First, as announced earlier, expenses for General American Transportation were higher as a result of increased maintenance costs and the implementation of new services. Second, GATX Capital reported substantially lower disposition gains. Third, GATX Capital increased its loss provision due to continuing economic uncertainty in the aircraft industry and real estate. Despite these reductions in earnings, GATX is experiencing improvements in other areas. GATX Terminals achieved increased margins as a result of improved marketing and cost control programs. The Unit Companies reported a second quarter profit also as a result of strong margin improvement, and we believe this is the beginning of an increasing contribution to GATX earnings.
 "GATX continues to manage its assets to maintain long-term value and generate strong cash flows. Supported by quality long-term assets on long-term leases to quality customer, cash flow from operations and portfolio proceeds remain strong," Glasser concluded.
 Railcar Leasing and Management
 General American Transportation Corp. reported second quarter earnings of $11.8 million compared to $14.5 million for the second quarter of 1991. The decline in earnings primarily reflects reduced margins due to increased operating costs, mainly inspection and repair expenses, as well as reduced income generated by invested funds. The 1991 quarter included the proceeds received from the sale of its Mexican affiliate. In addition, the number of cars on lease, 49,783, is slightly below last year's 49,880. At the end of the second quarter, utilization of the fleet was 93 percent, compared to 94 percent a year ago.
 Financial Services
 GATX Capital reported earnings of $4.7 million for the second quarter of 1992 compared to $7.9 million for the 1991 second quarter. This decline reflects GATX Capital's lower pretax disposition gains for the second quarter of $5.3 million compared to $8.6 million a year ago and the increased loss provision. The reduction in disposition gains was partially offset by an 12 percent increase in lease and fee income. The provision for losses was $7.0 million compared to $3.0 million in the year ago period, reflecting GATX's continuing uncertainty on future demand for freighter aircraft and the ongoing softness in certain real estate markets. Of GATX Capital's $1.4 billion portfolio, approximately $55 million is invested in freighter aircraft. GATX previously stated it is liquidating the $170 million real estate portfolio. The increase in the loss provision also reflects the deterioration of the southern California real estate market, where GATX has a $33 million investment. GATX Capital will continue to manage the risk in these areas and will closely monitor the freighter and real estate markets to ensure that the overall loss reserve remains adequate.
 Terminals and Pipelines
 GATX Terminals Corp. earned $5.3 million for the second quarter of 1992 compared to $3.9 million for the second quarter of 1991. This increase in earnings reflects strong revenue increases coupled with margin improvements due to the control of operating costs throughout Terminals' domestic system. Utilization at the end of the second quarter was 88 percent compared to 84 percent a year ago.
 Great Lakes Shipping
 American Steamship Company earned $2.1 million for the second quarter of 1992 compared to earnings of $1.5 million for the second quarter of 1991. Although stone tonnage is weakening, demand for raw material for the steel and power generation industries remains strong.
 Logistics Support, Warehousing and Distribution
 The Unit Companies reported earnings of $.2 million for the second quarter of 1992 compared to a loss of $.3 million for the second quarter of 1991. New business, combined with margin improvements, contributed to Unit's profitability.
 Corporate Description
 GATX Corp. is a $3.5 billion service-based asset company which provides capital equipment and related services for use in various domestic and international markets. Customers utilize GATX's rail, aircraft, bulk liquid storage terminals, pipelines, logistics support and warehousing, and shipping assets to operate their businesses on a daily basis. GATX Corp. is listed on the New York, London, and other stock exchanges.
 GATX CORP.
 (In millions, except per share data)
 Periods ended Three Months Six Months
 June 30 1992 1991 1992 1991
 Gross income $259.3 $242.6 $491.2 $454.4
 Income before cumulative effect
 of accounting changes 16.5 20.6 32.3 39.5
 Net income (loss) 16.5 20.6 (10.6) 39.5
 Net income (loss) per share .68 .89 (.89) 1.69
 Fully diluted net income (loss)
 per share .68(A) .87 (.89)(A) 1.68
 Average number of common
 shares and common share
 equivalents outstanding
 (in thousands) 19,544 19,529 19,425 19,479
 (A) -- Conversion of preferred stock excluded from computation of fully diluted earnings because of antidilutive effects.
 Income (Loss) Before Cumulative Effect of Accounting Changes
 (In millions)
 Periods ended: Three months Six months
 June 30: 1992 1991 1992 1991
 Railcar leasing & management $11.8 $14.5 $22.9 $28.0
 Financial services 4.7 7.9 10.1 15.8
 Terminals & pipelines 5.3 3.9 11.2 8.0
 Great Lakes Shipping 2.1 1.5 2.4 1.9
 Warehousing & distribution .2 (.3) -- (.7)
 Corporate & other (7.6) (6.9) (14.3) (13.5)
 Income before cumulative effect
 of accounting changes 16.5 20.6 32.3 39.5
 Cumulative effect of accounting
 changes -- -- (42.9) --
 Net income (loss) $16.5 $20.6 ($10.6) $39.5
 -0- 7/16/92
 /CONTACT: George Lowman of GATX, 312-621-6599/
 (GMT) CO: GATX Corporation ST: Illinois IN: MTC SU: ERN


TS -- NY047 -- 8469 07/16/92 11:14 EDT
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Date:Jul 16, 1992
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