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GATX ANNOUNCES RESULTS; PREVIOUSLY REPORTED $60 MILLION INCREASE TO GATX CAPITAL RESERVES RESULTS IN LOSS; 1993 EXPECTED TO BE BETTER THAN 1992

GATX ANNOUNCES RESULTS; PREVIOUSLY REPORTED $60 MILLION INCREASE TO GATX CAPITAL RESERVES RESULTS IN LOSS; 1993 EXPECTED TO BE BETTER THAN 1992
 CHICAGO, Oct. 21 /PRNewswire/ -- GATX Corp. (NYSE: GMT) today reported a loss for the third quarter and for the first nine months of 1992.
 The third quarter loss resulted from a $37 million after-tax special provision for losses at GATX Capital announced earlier in the quarter. The loss for the first nine months reflects this charge as well as a $43 million net charge taken in the first quarter for accounting adjustments related to FASB 106 and 109.
 For the quarter ended Sept. 30, 1992, GATX reported a net loss of $15.4 million or $.96 per common share. This compares with net income of $22.1 million or $.96 per common share for the 1991 third quarter. Before the special provision to the loss reserve, earnings were $21.6 million or $.94 per common share.
 For the nine months ended Sept. 30, 1992, GATX reported a net loss of $26 million or $1.85 per common share. This compares to earnings of $61.6 million or $2.65 per common share for the similar period of the prior year. Before the effects of the first quarter FASB adjustments and the third quarter special provision to the loss reserve, operating earnings were $53.9 million or $2.26 per common share.
 Cash Flow Remains Strong
 James J. Glasser, chairman of the board, president and chief executive officer, stated, "Cash flow from operations and portfolio proceeds increased 5 percent over the year-ago quarter from $111 to $116 million. GATX's long-lived assets are on stable long-term leases that provide strong cash flows.
 1993 -- Considerably Better Than 1992
 "Although we anticipate that business conditions will remain stable, we are currently projecting that earnings for the fourth quarter will be lower than the current quarter, exclusive of the special loss provision. The difference will come from expected lower disposition gains, increased maintenance expenses at General American, and certain costs related to restructuring debt and corporate expense.
 "We are anticipating that 1993 will be improved over 1992, before the impact of the FASB adjustments and the special increase of our loss provision. The upturn will be generated by continuing operational improvements at Terminals and Unit, and increased earnings at Capital and General American," Glasser concluded.
 Railcar Leasing and Management
 General American Transportation Corp. reported third quarter earnings of $14.4 million compared to $13.7 million for the third quarter of 1991. The number of cars on lease, 49,610, was 166 cars below last year's level. At the end of the third quarter, utilization of the fleet was 92 percent compared to 93 percent a year ago.
 Financial Services
 GATX Capital reported a loss of $30.4 million for the third quarter of 1992 compared to a profit of $8.6 million for the 1991 third quarter. Before the $60 million special increase to the loss reserve, earnings were $6.6 million. This decline primarily reflects GATX Capital's lower pretax disposition gains for the third quarter: $8.7 million compared to $18.8 million a year ago. The $102 million loss reserve now in place represents 8.1 percent of GATX Capital's investments. This is by far the highest level of reserves held for this company. GATX believes that the reserve is adequate to cover any reasonably foreseeable economic conditions.
 Terminals and Pipelines
 GATX Terminals Corp. earned $5.6 million for the third quarter compared to $4.4 million for the 1991 third quarter. This increase in earnings reflects strong revenue gains coupled with margin improvements from controlling operating costs throughout Terminals' systems. Notably, Terminals is experiencing very strong performance from foreign affiliates. Utilization at the end of the third quarter was 90 percent compared to 87 percent a year ago. Year-to-date throughput was 478 million barrels which is slightly below last year's levels.
 Great Lakes Shipping
 American Steamship Company earned $2.1 million during the 1992 quarter compared to earnings of $2.3 million for the same period last year. Tonnage moved year-to-date was 16.7 million tons compared to 16.3 million tons a year ago. Steel-related cargoes are up over a year ago reflecting the strong 80 percent capacity utilization at Great Lakes steel mills. Coal and stone cargoes are off from year-ago levels.
 Logistics Support, Warehousing and Distribution
 The Unit Companies reported earnings of $.3 million for the latest three months compared to a break-even level for the 1991 third quarter. New business, combined with margin improvements, contributed to Unit's profitability.
 Corporate Description
 GATX Corp. is a $3.4 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. (GMT) is listed on the New York, London, and other stock exchanges.
 GATX Corp.
 (In millions, except per-share data)
 Periods ended Sept. 30 Three Months Nine Months
 1992 1991 1992 1991
 Gross income $272.8 $272.2 $764.0 $726.6
 Income (loss) before cumulative
 effect of accounting changes (15.4) 22.1 16.9 61.6
 Net (loss) income (15.4) 22.1 (26.0) 61.6
 Net (loss) income per share $(.96) $.96 $(1.85) $2.65
 Fully diluted net (loss) income
 per share (.96)(A) .93 (1.85)(A) 2.61
 Average number of common
 shares and, in 1991, common
 share equivalents outstanding
 (in thousands) 19,443 19,609 19,431 19,498
 (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 Sept. 30 Three Months Nine Months
 1992 1991 1992 1991
 Railcar leasing & management $14.4 $13.7 $37.3 $41.7
 Financial services (30.4) 8.6 (20.3) 24.4
 Terminals & pipelines 5.6 4.4 16.8 12.4
 Great Lakes shipping 2.1 2.3 4.5 4.2
 Warehousing & distribution .3 -- .3 (.7)
 Corporate & other (7.4) (6.9) (21.7) (20.4)
 Income (loss) before cumulative
 effect of accounting changes (15.4) 22.1 16.9 61.6
 Cumulative effect of accounting
 changes -- -- (42.9) --
 Net (loss) income ($15.4) $22.1 ($26.0) $61.6
 -0- 10/21/92
 /CONTACT: George Lowmanm of GATX, 312-621-6599/
 (GMT) CO: GATX Corp. ST: Illinois IN: FIN SU: ERN


CK -- NY067 -- 2911 10/21/92 12:48 EDT
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Date:Oct 21, 1992
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