CHICAGO--(BUSINESS WIRE)--May 4, 2015--
GATX Corporation (NYSE:GMT) today responded to the regulations recently
announced by the US Department of Transportation (DOT) and Transport
Canada regarding the transportation of flammable liquids by rail.
Brian A. Kenney, president and CEO of GATX Corporation, stated, “As part
of the new rules announced last week, the Department of Transportation
provided a timeline for modification or retirement of existing tank cars
carrying flammable liquids. GATX understands the need for all industry
participants to respond constructively in this effort to improve safety,
and we will move expeditiously to meet the mandated schedule.
“GATX’s North American railcar fleet contains nearly 126,000 railcars,
and we currently estimate that approximately 13,700 tank cars in our
fleet could be affected by the new regulations. The number of cars
affected could be substantially less depending on whether these cars
travel as part of high-hazard flammable train (HHFT) service as defined
by the new rules. Based on our preliminary analysis, approximately 90%
of GATX’s affected cars have a deadline of 2023 or later for
modification or retirement, due to the type of commodities they
currently carry.
“GATX previously stated that it is unlikely to retrofit its older
DOT-111 tank cars and that it is more likely to retire them. The DOT’s
addition of electronically controlled pneumatic (ECP) brakes to the
retrofit standard is not only questionable from a safety improvement
perspective, it makes the probability of retrofit even more unlikely for
these cars.
“Providing our customers with the safest railcars and service continues
to be our highest priority, and we look forward to working with
customers to efficiently adopt this new rule.”
GATX will continue to analyze the impact of these regulations on its
business and its customers, and will communicate more information
regarding its plans and potential financial impacts as appropriate.
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. As the largest
global railcar lessor, GATX has been providing 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, please visit the Company's website at www.gatx.com.
FORWARD-LOOKING STATEMENTS
Forward-looking statements in this document that are not historical
facts are “forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. These include statements that
reflect our current views with respect to, among other things, future
events, financial performance and market conditions. 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,” “continue,” “likely,”
“will,” “would,” and variations of these terms and similar expressions,
or the negative of these terms or similar expressions. Specific risks
and uncertainties include, but are not limited to, (1) changes in
regulatory requirements for tank cars carrying crude, ethanol, and other
flammable liquids, (2) competitive factors in our primary markets, (3)
weak economic conditions, financial market volatility, and other factors
that may decrease demand for our assets and services, (4) inability to
maintain our assets on lease at satisfactory rates, (5) changes to, or
failure to comply with, laws, rules, and regulations applicable to our
assets and operations, (6) operational disruption and increased costs
associated with compliance maintenance programs and other maintenance
initiatives, (7) financial and operational 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) events having an adverse impact on assets,
customers, or regions where we have a large investment, (10) decreased
demand for certain railcars used in the petroleum industry due to
sustained low crude-oil prices, (11) risks related to international
operations and expansion into new geographic markets, (12) inadequate
allowances to cover credit losses in our portfolio, (13) asset
impairment charges we may be required to recognize, (14) environmental
remediation costs or a negative outcome in our pending or threatened
litigation, (15) inability to obtain cost-effective insurance, (16)
fluctuations in foreign exchange rates, (17) operational and financial
risks related to our affiliate investments, (18) reduced opportunities
to generate asset remarketing income, (19) failure to successfully
negotiate collective bargaining agreements with the unions representing
a substantial portion of our employees, and (20) other risks discussed
in our filings with the US Securities and Exchange Commission (SEC),
including our form 10-K for the year ended December 31, 2014, and our
subsequently filed form 10-Q reports, all of which are available on the
SEC’s website (www.sec.gov).
Investors 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. The Company undertakes no obligation to publicly
update or revise these forward-looking statements.
Investor, corporate, financial, historical financial, photographic
and news release information may be found at www.gatx.com.
Source: GATX Corporation
GATX Corporation
Jennifer Van Aken
312-621-6689
jennifer.vanaken@gatx.com