CHICAGO--(BUSINESS WIRE)--Mar. 24, 2014--
GATX Corporation (NYSE:GMT) announced its purchase of GE Capital Rail
Services’ North American per diem boxcar fleet, consisting of more than
18,500 boxcars. The purchase price was approximately $340 million.
Brian A. Kenney, president and chief executive officer of GATX said,
“This fleet acquisition establishes GATX as the leader in the boxcar
leasing market and adds a significant number of railcars to our fleet
that are critical-use assets for certain important sectors of the North
American economy. Many of the customers utilizing this fleet are
existing GATX customers, and this acquisition enhances our ability to
meet these customers’ broad rail transportation needs. The transaction
is expected to be immediately accretive, although at this point we are
not adjusting our previously announced 2014 earnings guidance.”
GATX expects the acquired fleet to generate approximately $70 million in
annual revenue. The average age of the fleet is 34 years relative to the
statutory life of 50 years.
COMPANY DESCRIPTION
GATX Corporation (NYSE: GMT) strives to be recognized as the finest
railcar leasing company in the world by its customers, its shareholders,
its employees, and the communities where it operates. Controlling one of
the largest railcar lease fleets in the world, GATX has provided quality
railcars and services to its customers for more than 115 years. GATX has
been headquartered in Chicago, Illinois since its founding in 1898. For
more information, visit the Company’s website at www.gatx.com.
FORWARD-LOOKING STATEMENTS
Certain statements in this document may constitute forward-looking
statements within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended, and are subject to the safe harbor provisions of those
sections and the Private Securities Litigation Reform Act of 1995. These
statements refer to information that is not purely historical, such as
estimates, projections and statements relating to our business plans,
objectives and expected operating results, and the assumptions on which
those statements are based. Some of these statements may be identified
by words like “anticipate,” “believe,” “estimate,” “expect,” “intend,”
“plan,” “predict,” “project” or other similar words. Investors are
cautioned that any such forward-looking statements are not guarantees of
future performance and involve risks and uncertainties, including those
described in our Annual Report on Form 10-K for the year ended December
31, 2013 and other filings with the SEC, and that actual results or
events may differ materially from the forward-looking statements.
Specific risks and uncertainties that might cause actual results to
differ from expectations include, but are not limited to, (1) changes in
regulatory requirements for tank cars in crude, ethanol and other
flammable liquid commodity service; (2) competitive factors in our
primary markets, including lease pricing and asset availability; (3)
weak economic conditions, financial market volatility and other factors
that may negatively affect the rail, marine and other industries served
by us and our customers; (4) inability to maintain satisfactory lease
rates or utilization levels for our assets, or increased operating costs
in our primary operating segments; (5) changes to the laws, rules and
regulations applicable to us and our rail, marine and other assets, or
failure to comply with those laws, rules and regulations; (6)
operational disruption and increased costs associated with compliance
maintenance programs and other maintenance initiatives; (7) operational
and financial risks associated with long-term railcar purchase
commitments; (8) deterioration of conditions in the capital markets,
reductions in our credit ratings, or increases in our financing costs;
(9) unfavorable conditions affecting certain assets, customers or
regions where we have a large investment; (10) risks related to our
international operations and expansion into new geographic markets; (11)
inadequate allowances to cover credit losses in our portfolio or
declines in the credit quality of our customer base; (12) impaired asset
charges that may result from weak economic or market conditions, changes
to the laws, rules or regulations affecting our assets, events related
to particular customers or asset types, or portfolio management
decisions we implement; (13) environmental remediation costs or a
negative outcome in our pending or threatened litigation; (14) our
inability to obtain cost-effective insurance; (15) operational and
financial risks related to our affiliate investments, particularly where
certain affiliates may contribute significantly to our consolidated
operating profit; (16) reduced opportunities to generate asset
remarketing income; and (17) failure to successfully negotiate
collective bargaining agreements with the labor relations with unions
representing a substantial portion of our employees.
Given these risks and uncertainties, readers are cautioned not to place
undue reliance on these forward-looking statements, which reflect our
analysis, judgment, belief or expectation only as of the date hereof. We
have based these forward-looking statements on information currently
available and disclaim any intention or obligation to update or revise
these forward-looking statements to reflect subsequent events or
circumstances.
Investor, corporate, financial, historical financial, photographic
and news release information may be found at www.gatx.com.
Source: GATX Corporation
For Further Information Contact:
GATX Corporation
Jennifer
Van Aken
Director, Investor Relations
312-621-6689
jennifer.vanaken@gatx.com