(GATX LOGO) NEWS RELEASE
FOR RELEASE: IMMEDIATE
GATX CORPORATION REPORTS 2006 FOURTH QUARTER AND FULL-YEAR RESULTS; BOARD OF
DIRECTORS AUTHORIZES $300 MILLION SHARE REPURCHASE PROGRAM
CHICAGO, January 25 -- GATX Corporation (NYSE:GMT) today reported 2006
fourth quarter and full-year results. Per share results for the fourth quarter
and full year ending December 31 are summarized below:
<Table>
<Caption>
Three Months Twelve Months Ended
Ended December 31 December 31
--------------------------- -------------------------
PER DILUTED SHARE 2006 2005 2006 2005
- ----------------- ------------ ----------- ---------- ----------
Income from Continuing Operations $ .50 $ .19 $ 2.63 $ 1.94
Income (Loss) from Discontinued Operations .11 (2.37) (.63) (1.96)
--- ------ ----- ------
Total $ .61 $ (2.18) $ 2.00 $ (.02)
</Table>
In the third quarter of 2006, GATX signed an agreement to sell the
majority of its aircraft leasing business to Macquarie Aircraft Leasing Limited
(MALL). As a result, the aircraft leasing segment is reported as discontinued
operations and prior periods have been restated to conform to the current
presentation.
In the 2006 fourth quarter, net income from continuing operations was
$27.7 million or $.50 per diluted share, compared with net income of $9.4
million or $.19 per diluted share in the fourth quarter of 2005. The fourth
quarter of 2005 included $9.9 million or $.19 per diluted share of tax expense
associated with the repatriation of foreign earnings.
Net income from continuing operations for the full-year 2006 was $150.5
million or $2.63 per diluted share, including a total of $9.9 million or $.16
per diluted share of benefits from a tax rate change, and derivative activity at
an affiliate. This compares with $105.6 million or $1.94 per diluted share in
the prior year, which included the aforementioned tax expense from repatriation
of foreign earnings.
Highlights for the 2006 fourth quarter and year include:
- Utilization of Rail's North American fleet remained at 99% and the
lease renewal success rate remained at a historical high throughout
2006. In the fourth quarter, lease renewal rates increased 19% over
expiring rates and average renewal lease term remained long at 70
months, both on a basket of common car types.
- Investment volume in 2006 exceeded levels achieved in 2005 and 2004.
Total investment volume reached $763 million in 2006, up from $503
million in 2005 and $535 million in 2004.
Page 2
- On November 30, 2006, GATX sold its wholly-owned aircraft to MALL.
On January 17, 2007, GATX sold its interests in joint venture
aircraft to MALL, completing GATX's exit from the aircraft leasing
business.
- American Steamship Company (ASC) results improved in 2006 due to the
contribution from the six vessels purchased in June from Oglebay
Norton, increasing rates, and favorable operating conditions on the
Great Lakes.
Brian A. Kenney, president and CEO of GATX, stated, "Our 2006 results
reflect continuing strength in our markets. Net income from continuing
operations increased substantially over 2005. We grew our rail, marine and
industrial equipment assets while maintaining our disciplined investment
approach. We also improved the risk profile of the Company through the sale of
the air business, and this is reflected in our higher credit ratings. GATX
earned a return on equity from continuing operations of approximately 14% in
2006 -- a return that I believe is attractive on a risk-adjusted basis given our
new business mix.
"We expect that GATX will show continued improvement in financial returns
in 2007. Average lease rates in Rail should continue increasing, and we will
work hard to continue extending average lease terms. We invested $534 million in
rail assets in 2006, representing a 33% increase over 2005 investment volume of
$403 million. This is encouraging given the historically high price for new
railcars and intense competition in the secondary market. Despite signs of
increasing weakness in certain segments of the freight car market, we expect
Rail's income contribution to increase significantly in 2007."
Mr. Kenney continued, "Net income at Specialty was down slightly in 2006,
as the shipping market cooled from its record-breaking performance in 2005.
Vessel utilization remained high and even with the expected decrease in rates,
our shipping joint ventures performed very well. We expect similar results from
these joint ventures in 2007. Asset remarketing income, primarily from the
managed portfolios, was stronger than originally expected in 2006. In 2007, we
expect Specialty's income contribution to decline versus 2006 as we do not
anticipate the same level of remarketing gains that were achieved in the prior
year.
"ASC's operating performance in 2006 improved due to the contribution of
the six vessels acquired in June and the strong market environment. We expect
similar operating performance in 2007. Due to this acquisition and the sale of
the Air leasing business, we will break out ASC as a segment for financial
reporting purposes, beginning with the Form 10-K to be filed later this quarter.
Page 3
"As a result of the successful completion of the Air sale and factors such
as our current outlook for investment volume and leverage, the GATX Board of
Directors has authorized a $300 million share repurchase program. This
authorization enables GATX to return a sizable portion of the net Air sale
proceeds to shareholders while also providing the continued flexibility to
invest in rail, marine, and industrial equipment assets -- and to do so even
more aggressively when warranted by asset prices."
Mr. Kenney concluded, "We look forward in 2007 to capitalizing on
continued strength in the rail market and more fully capturing the benefits of
refocusing the Company on its most attractive assets. We expect 2007 income from
continuing operations to be in the range of $2.90-$3.10 per diluted share,
representing a substantial increase over 2006 levels. This reflects expectations
for continued improvement in Rail's income contribution, a decrease in
Specialty's income versus recent high levels, and the positive impact of a lower
share count."
GATX RAIL
Rail reported net income of $26.9 million in the fourth quarter of 2006,
compared with $17.9 million in the fourth quarter of 2005. For the full year,
Rail reported $116.4 million in net income versus $81.7 million in 2005. Net
income increased year over year primarily due to an increased number of cars on
lease, higher average lease rates, improved contributions from European
operations, and increased remarketing income. The 2006 full-year results include
$4.0 million of after-tax benefit related to derivative activity at an affiliate
and $5.9 million of deferred tax benefits from an enacted reduction in Canadian
statutory tax rates, while the 2005 fourth quarter and full-year results
included $5.3 million of tax expense related to the repatriation of foreign
earnings.
At December 31, 2006, Rail's North American fleet totaled more than
110,000 cars and fleet utilization remained at 99% each quarter in 2006, up from
98% at year end 2005.
During the fourth quarter, lease renewal pricing on a basket of Rail's
most common car types increased 19% over expiring lease rates, comparable to the
prior quarter. Rail also extended the average term on basket renewals during the
fourth quarter to 70 months, compared with 62 months in the fourth quarter of
2005. This action is expected to temper future earnings volatility.
Total investment volume at Rail was $534 million, up from $403 million in
2005 and $490 million in 2004. Rail acquired 6,302 cars for its North American
fleet during 2006, comprised of 3,495 new and 2,807 used railcars, and sold or
scrapped 3,975 cars. These actions created net growth in the fleet of more than
2,300 cars during the year. Many of the new railcars were acquired at advantaged
prices through our Committed Purchase Program. Additionally, Rail's success in
Page 4
acquiring used railcars is a result of a proactive initiative to target certain
used car types. Rail also identified additional attractive investment
opportunities in Europe, investing more than $45 million in this important
market.
In macroeconomic data related to Rail's business, North American
manufacturing capacity utilization, as reported by the Federal Reserve, was 82%
in December 2006, up from 81% in the same period 2005. Backlogs at the railcar
manufacturers, as reported by the Railway Supply Institute, totaled nearly
86,000 cars at the end of the fourth quarter 2006, up from approximately 69,000
during the same period 2005 and down from 88,000 in the third quarter 2006.
Carloadings on the U.S. rails, excluding intermodal, as reported by the
Association of American Railroads, increased 1.2% over 2005. Chemical shipments
were down 1.1% in 2006 versus 2005.
GATX SPECIALTY
Specialty reported net income of $7.0 million in the fourth quarter of
2006 compared with $4.8 million in the prior year period. For the full-year
2006, Specialty reported net income of $55.1 million, compared with $60.9
million in 2005. Both 2006 and 2005 results reflect very strong remarketing
activity. The 2006 results also reflect marine joint venture income that slowed
as expected from record levels in 2005.
Remarketing gains in 2006 were robust, totaling $27.9 million, comprised
of $.8 million from gains on sales of owned assets and $27.1 million in residual
sharing income from the managed portfolio. Similarly, in 2005, remarketing gains
at Specialty totaled $28.1 million. These high levels of remarketing activity
are not expected to occur again in 2007.
Note that the Specialty segment now includes the results of GATX's 50%
interest in the aircraft engine leasing joint venture, Rolls-Royce & Partners
Finance, which was previously included in the Air segment. GATX plans to retain
its interest in this investment. Prior periods have been restated to conform to
the current presentation.
The Specialty portfolio currently consists of approximately $500 million
of owned assets (including on and off balance sheet assets) and third-party
managed portfolios totaling approximately $470 million.
DISCONTINUED OPERATIONS
In the third quarter of 2006, GATX signed an agreement to sell the
majority of its aircraft leasing business to MALL. The sale of the wholly-owned
aircraft was completed on November 30, 2006 and sale of the interests in joint
venture aircraft was completed on January 17, 2007.
Page 5
In addition to the sale to MALL, GATX sold 27 aircraft to AerCap in the
latter half of the year, and in July 2006 completed the sale of GATX's share of
the Pembroke joint venture to management.
In the first quarter of 2007, GATX will record final Air sale purchase
price adjustments in Discontinued Operations; adjustments are not expected to be
material to GATX's overall financial position.
SEGMENT REPORTING
Based on GATX's exit from the aircraft leasing business, the Company may
reformat segment results in the future. Any changes to segment reporting will be
detailed in the Company's 2006 Annual Report on Form 10-K.
COMPANY DESCRIPTION
GATX Corporation (NYSE:GMT) provides lease financing and related services
to customers operating rail, marine and other targeted assets. GATX is a leader
in leasing transportation assets and controls one of the largest railcar fleets
in the world. Applying over a century of operating experience and strong market
and asset expertise, GATX provides quality assets and services to customers
worldwide. GATX has been headquartered in Chicago, IL since its founding in 1898
and has traded on the New York Stock Exchange since 1916. For more information,
visit the Company's website at www.gatx.com.
TELECONFERENCE INFORMATION
GATX Corporation will host a teleconference to discuss 2006 results.
Teleconference details are as follows:
Thursday, January 25th
11:00 A.M. EASTERN TIME
Domestic Dial-In: 1-800-706-6082
International Dial-In: 1-706-634-7421
Replay: 1-800-642-1687 / Access Code: 5984330
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 STATEMENTS
Certain statements may constitute forward-looking statements made pursuant to
the safe harbor provision of the Private Securities Litigation Reform Act of
1995. These statements are identified by words such as "anticipate," "believe,"
"estimate," "expect," "intend," "predict," or "project" and similar expressions.
This information may involve risks and uncertainties that could cause actual
results to differ materially from the forward-looking statements. Although the
Company believes that the expectations reflected in such forward-looking
statements are based on reasonable assumptions, such statements are subject to
risks and uncertainties that could cause actual results to differ
Page 6
materially from those projected. Risks and uncertainties include, but are not
limited to, general economic conditions; lease rates, utilization levels and
operating costs in GATX's primary asset segments; conditions in the capital
markets; changes in GATX's or GATX Financial Corporation's credit ratings;
dynamics affecting companies within the markets served by GATX; regulatory
rulings that may impact the economic value and operating costs of assets;
competitive factors in GATX's primary markets including lease pricing and asset
availability; changes in loss provision levels within GATX's portfolio; impaired
asset charges that may result from changing market conditions or implementation
of portfolio management initiatives by GATX; the outcome of pending or
threatened litigation and general market conditions in the rail, air, marine and
other large-ticket industries. Other factors and unanticipated events could
adversely affect our business operations and financial performance. We discuss
certain of these matters more fully, as well as certain risk factors that may
affect our business operations, financial condition and results of operations,
in other of our filings with the SEC, including our Annual Report on Form
10-K/A. These risks, uncertainties and other factors should be carefully
considered in evaluating the forward-looking statements. The forward-looking
statements included in this press release are made only as of the date of this
release, and we undertake no obligation to update these forward-looking
statements to reflect subsequent events or circumstances.
FOR FURTHER INFORMATION CONTACT:
GATX Corporation
Rhonda S. Johnson
312-621-6262
rhonda.johnson@gatx.com
Investor, corporate, financial, historical financial, photographic and news
release information may be found at www.gatx.com.
(01/25/07)
--Tabular Follows--
Page 7
GATX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(IN MILLIONS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31 DECEMBER 31
------------------ -------------------
2006 2005 2006 2005
------ ------- -------- --------
GROSS INCOME
Lease income $214.0 $ 197.5 $ 826.2 $ 763.2
Marine operating revenue 66.4 43.2 205.6 135.7
Interest income on loans 0.5 2.7 3.6 9.6
Asset remarketing income 6.0 1.1 47.6 41.4
Fees 0.7 1.0 4.9 5.1
Other income 17.6 18.4 65.1 74.4
------ ------- -------- --------
Revenues 305.2 263.9 1,153.0 1,029.4
Share of affiliates' earnings 12.9 12.1 76.1 73.7
------ ------- -------- --------
TOTAL GROSS INCOME 318.1 276.0 1,229.1 1,103.1
OWNERSHIP COSTS
Depreciation 44.4 36.5 163.3 142.9
Interest expense, net 34.6 25.7 129.2 105.7
Operating lease expense 39.4 45.7 166.6 180.0
------ ------- -------- --------
TOTAL OWNERSHIP COSTS 118.4 107.9 459.1 428.6
OTHER COSTS AND EXPENSES
Maintenance expense 52.9 52.8 201.8 194.1
Marine operating expense 53.5 36.6 161.2 108.9
Selling, general and administrative expense 39.6 39.1 146.7 141.0
Asset impairment charges 1.7 2.1 5.5 6.2
Other expenses 7.2 14.4 28.7 52.3
------ ------- -------- --------
TOTAL OTHER COSTS AND EXPENSES 154.9 145.0 543.9 502.5
------ ------- -------- --------
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 44.8 23.1 226.1 172.0
INCOME TAXES 17.1 13.7 75.6 66.4
------ ------- -------- --------
INCOME FROM CONTINUING OPERATIONS 27.7 9.4 150.5 105.6
INCOME (LOSS) FROM DISCONTINUED
OPERATIONS, NET OF TAXES 7.4 (121.3) (38.8) (119.9)
------ ------- -------- --------
NET INCOME (LOSS) $ 35.1 $(111.9) $ 111.7 $ (14.3)
====== ======= ======== ========
Page 8
GATX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(IN MILLIONS, EXCEPT PER SHARE DATA)
(CONTINUED)
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31 DECEMBER 31
------------------ -------------------
2006 2005 2006 2005
------- ------- ------- -------
PER SHARE DATA
Basic:
Income from continuing operations $ 0.54 $ 0.19 $ 2.95 $ 2.11
Income (Loss) from discontinued operations 0.14 (2.40) (0.76) (2.40)
------- ------- ------- -------
Total $ 0.68 $ (2.21) $ 2.19 $ (0.29)
======= ======= ======= =======
Average number of common shares (in thousands) 51,420 50,613 51,001 50,106
Diluted:
Income from continuing operations $ 0.50 $ 0.19 $ 2.63 $ 1.94
Income (Loss) from discontinued operations 0.11 (2.37) (0.63) (1.96)
------- ------- ------- -------
Total $ 0.61 $ (2.18) $ 2.00 $ (0.02)
======= ======= ======= =======
Average number of common shares and
common share equivalents (in thousands) 62,091 51,264 62,101 61,020
Dividends declared per common share $ 0.21 $ 0.20 $ 0.84 $ 0.80
Page 9
GATX CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(IN MILLIONS)
DECEMBER 31 DECEMBER 31
2006 2005
----------- -----------
ASSETS
CASH AND CASH EQUIVALENTS $ 196.2 $ 106.0
RESTRICTED CASH 48.0 53.1
RECEIVABLES
Rent and other receivables 102.5 81.4
Finance leases 402.6 313.6
Loans 36.0 37.3
Less: Allowance for possible losses (9.6) (12.7)
--------- ---------
531.5 419.6
OPERATING LEASE ASSETS, FACILITIES AND OTHER
Rail 4,352.4 3,728.1
Specialty 113.6 90.8
Other 361.2 234.9
Less: Allowance for depreciation (1,798.0) (1,741.6)
--------- ---------
3,029.2 2,312.2
INVESTMENTS IN AFFILIATED COMPANIES 291.9 283.9
GOODWILL 92.8 86.0
OTHER ASSETS 222.2 276.8
ASSETS OF DISCONTINUED OPERATIONS 232.2 1,706.8
--------- ---------
TOTAL ASSETS $ 4,644.0 $ 5,244.4
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
ACCOUNTS PAYABLE AND ACCRUED EXPENSES $ 159.6 $ 166.1
DEBT
Commercial paper and bank credit facilities 22.4 57.0
Recourse 2,138.1 2,715.4
Nonrecourse 2.7 37.7
Capital lease obligations 51.5 62.5
--------- ---------
2,214.7 2,872.6
DEFERRED INCOME TAXES 754.8 683.4
OTHER LIABILITIES 351.9 373.7
LIABILITIES OF DISCONTINUED OPERATIONS -- 126.3
--------- ---------
TOTAL LIABILITIES 3,481.0 4,222.1
SHAREHOLDERS' EQUITY 1,163.0 1,022.3
--------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 4,644.0 $ 5,244.4
========= =========
Page 10
GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
THREE MONTHS ENDED DECEMBER 31, 2006
(IN MILLIONS)
GATX
RAIL SPECIALTY OTHER CONSOLIDATED
------ --------- ----- ------------
GROSS INCOME
Lease income $201.0 $12.0 $ 1.0 $214.0
Marine operating revenue -- -- 66.4 66.4
Interest income on loans -- 0.5 -- 0.5
Asset remarketing income 3.9 2.1 -- 6.0
Fees 0.3 0.4 -- 0.7
Other income 15.7 1.4 0.5 17.6
------ ----- ----- ------
Revenues 220.9 16.4 67.9 305.2
Share of affiliates' earnings 5.2 7.7 -- 12.9
------ ----- ----- ------
TOTAL GROSS INCOME 226.1 24.1 67.9 318.1
OWNERSHIP COSTS
Depreciation 38.7 2.1 3.6 44.4
Interest expense, net 27.8 4.0 2.8 34.6
Operating lease expense 38.5 1.0 (0.1) 39.4
------ ----- ----- ------
TOTAL OWNERSHIP COSTS 105.0 7.1 6.3 118.4
OTHER COSTS AND EXPENSES
Maintenance expense 52.8 0.1 -- 52.9
Marine operating expense -- -- 53.5 53.5
Selling, general and administrative 19.4 2.3 17.9 39.6
Asset impairment charges 0.2 1.5 -- 1.7
Other expenses 4.9 2.3 -- 7.2
------ ----- ----- ------
TOTAL OTHER COSTS AND EXPENSES 77.3 6.2 71.4 154.9
------ ----- ----- ------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 43.8 10.8 (9.8) 44.8
INCOME TAX PROVISION (BENEFIT) 16.9 3.8 (3.6) 17.1
------ ----- ----- ------
INCOME (LOSS) FROM CONTINUING OPERATIONS $ 26.9 $ 7.0 $(6.2) $ 27.7
====== ===== ===== ======
Page 11
GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
THREE MONTHS ENDED DECEMBER 31, 2005
(IN MILLIONS)
GATX
RAIL SPECIALTY OTHER CONSOLIDATED
------ --------- ------ ------------
GROSS INCOME
Lease income $187.1 $ 8.9 $ 1.5 $197.5
Marine operating revenue -- -- 43.2 43.2
Interest income on loans -- 0.8 1.9 2.7
Asset remarketing income 0.2 0.9 -- 1.1
Fees 0.4 0.6 -- 1.0
Other income 18.5 1.2 (1.3) 18.4
------ ----- ------ ------
Revenues 206.2 12.4 45.3 263.9
Share of affiliates' earnings 3.3 8.8 -- 12.1
------ ----- ------ ------
TOTAL GROSS INCOME 209.5 21.2 45.3 276.0
OWNERSHIP COSTS
Depreciation 33.1 1.1 2.3 36.5
Interest expense, net 20.4 4.0 1.3 25.7
Operating lease expense 44.8 1.0 (0.1) 45.7
------ ----- ------ ------
TOTAL OWNERSHIP COSTS 98.3 6.1 3.5 107.9
OTHER COSTS AND EXPENSES
Maintenance expense 52.7 0.1 -- 52.8
Marine operating expense -- -- 36.6 36.6
Selling, general and administrative 19.4 2.2 17.5 39.1
Asset impairment charges 0.4 1.7 -- 2.1
Other expenses 11.0 3.8 (0.4) 14.4
------ ----- ------ ------
TOTAL OTHER COSTS AND EXPENSES 83.5 7.8 53.7 145.0
------ ----- ------ ------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 27.7 7.3 (11.9) 23.1
INCOME TAX PROVISION 9.8 2.5 1.4 13.7
------ ----- ------ ------
INCOME (LOSS) FROM CONTINUING OPERATIONS $ 17.9 $ 4.8 $(13.3) $ 9.4
====== ===== ====== ======
Page 12
GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
TWELVE MONTHS ENDED DECEMBER 31, 2006
(IN MILLIONS)
GATX
RAIL SPECIALTY OTHER CONSOLIDATED
------ --------- ------ ------------
GROSS INCOME
Lease income $780.0 $ 42.0 $ 4.2 $ 826.2
Marine operating revenue -- -- 205.6 205.6
Interest income on loans -- 3.6 -- 3.6
Asset remarketing income 19.7 27.9 -- 47.6
Fees 1.6 3.3 -- 4.9
Other income 59.0 5.5 0.6 65.1
------ ------ ------ --------
Revenues 860.3 82.3 210.4 1,153.0
Share of affiliates' earnings 22.7 53.4 -- 76.1
------ ------ ------ --------
TOTAL GROSS INCOME 883.0 135.7 210.4 1,229.1
OWNERSHIP COSTS
Depreciation 146.1 7.0 10.2 163.3
Interest expense, net 97.8 17.8 13.6 129.2
Operating lease expense 163.0 3.9 (0.3) 166.6
------ ------ ------ --------
TOTAL OWNERSHIP COSTS 406.9 28.7 23.5 459.1
OTHER COSTS AND EXPENSES
Maintenance expense 201.7 0.1 -- 201.8
Marine operating expense -- -- 161.2 161.2
Selling, general and administrative 79.1 8.7 58.9 146.7
Asset impairment charges 1.1 4.4 -- 5.5
Other expenses 24.6 4.5 (0.4) 28.7
------ ------ ------ --------
TOTAL OTHER COSTS AND EXPENSES 306.5 17.7 219.7 543.9
------ ------ ------ --------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 169.6 89.3 (32.8) 226.1
INCOME TAX PROVISION (BENEFIT) 53.2 34.2 (11.8) 75.6
------ ------ ------ --------
INCOME (LOSS) FROM CONTINUING OPERATIONS $116.4 $ 55.1 $(21.0) $ 150.5
====== ====== ====== ========
Page 13
GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
TWELVE MONTHS ENDED DECEMBER 31, 2005
(IN MILLIONS)
GATX
RAIL SPECIALTY OTHER CONSOLIDATED
------ --------- ------ ------------
GROSS INCOME
Lease income $729.4 $ 31.4 $ 2.4 $ 763.2
Marine operating revenue -- -- 135.7 135.7
Interest income on loans -- 7.7 1.9 9.6
Asset remarketing income 13.3 28.1 -- 41.4
Fees 1.7 3.4 -- 5.1
Other income 63.8 9.7 0.9 74.4
------ ------ ------ --------
Revenues 808.2 80.3 140.9 1,029.4
Share of affiliates' earnings 13.7 60.0 -- 73.7
------ ------ ------ --------
TOTAL GROSS INCOME 821.9 140.3 140.9 1,103.1
OWNERSHIP COSTS
Depreciation 132.1 4.2 6.6 142.9
Interest expense, net 81.9 18.0 5.8 105.7
Operating lease expense 176.2 4.1 (0.3) 180.0
------ ------ ------ --------
TOTAL OWNERSHIP COSTS 390.2 26.3 12.1 428.6
OTHER COSTS AND EXPENSES
Maintenance expense 193.3 0.8 -- 194.1
Marine operating expenses -- -- 108.9 108.9
Selling, general and administrative 73.0 7.7 60.3 141.0
Asset impairment charges 3.0 3.2 -- 6.2
Other expenses 37.9 5.1 9.3 52.3
------ ------ ------ --------
TOTAL OTHER COSTS AND EXPENSES 307.2 16.8 178.5 502.5
------ ------ ------ --------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 124.5 97.2 (49.7) 172.0
INCOME TAX PROVISION (BENEFIT) 42.8 36.3 (12.7) 66.4
------ ------ ------ --------
INCOME (LOSS) FROM CONTINUING OPERATIONS $ 81.7 $ 60.9 $(37.0) $ 105.6
====== ====== ====== ========
Page 14
GATX CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION (UNAUDITED)
(IN MILLIONS, EXCEPT RAILCAR DATA)
12/31/2006 12/31/2005
---------- ----------
ASSETS BY SEGMENT
Rail $4,602.9 $4,076.8
Specialty 499.5 465.0
Other 386.2 290.2
-------- --------
Total Assets of Continuing Operations, Excluding Cash (A) 5,488.6 4,832.0
Discontinued Operations 232.2 1,742.8
-------- --------
Total Assets, Excluding Cash (A) $5,720.8 $6,574.8
Investment Volume from Continuing Operations 763.1 503.2
Non-performing Investments 21.6 30.6
CAPITAL STRUCTURE
Commercial Paper and Bank Credit Facilities, Net of
Unrestricted Cash (173.8) (49.0)
Debt:
On Balance Sheet
Recourse 2,138.1 2,715.4
Nonrecourse 2.7 37.7
Off Balance Sheet
Recourse 977.1 1,129.7
Nonrecourse 343.9 359.8
Capital Lease Obligations 51.5 62.5
Total Borrowings, Net of Unrestricted Cash $3,339.5 $4,256.1
Total Recourse Debt (B) 2,992.9 3,858.6
Shareholders' Equity and Allowance for Losses 1,172.6 1,035.0
Recourse Leverage 2.6 3.7
ASSET REMARKETING INCOME FROM CONTINUING OPERATIONS
Disposition Gains on Owned Assets 18.1 23.8
Residual Sharing Income 29.5 17.6
-------- --------
Total Asset Remarketing Income $ 47.6 $ 41.4
NORTH AMERICAN RAILCAR DATA
Fleet Utilization 99% 98%
Beginning Fleet Size 108,151 106,819
Additions 6,302 5,400
Scrapped/Sold (3,975) (4,068)
-------- --------
Ending Fleet Size 110,478 108,151
(A) Includes off balance sheet assets
(B) Total Recourse Debt = On Balance Sheet Recourse + Off Balance Sheet
Recourse + Capital Lease Obligations + Commercial Paper and Bank Credit
Facilities, Net of Unrestricted Cash