GATX Corporation Reports 2023 First-Quarter Results

GATX Corporation (NYSE:GATX) today reported 2023 first-quarter net income of $77.4 million, or $2.16 per diluted share, compared to net income of $75.8 million, or $2.10 per diluted share, in the first quarter of 2022. The 2023 first-quarter results included a net negative impact of $1.3 million, or $0.04 per diluted share, from Tax Adjustments and Other Items. The 2022 first-quarter results included a net negative impact of $8.5 million, or $0.24 per diluted share, from Tax Adjustments and Other Items. Details related to Tax Adjustments and Other Items are provided in the attached Supplemental Information.

"Consistent with our expectations coming into the year, demand across our global railcar fleets remains robust," said Robert C. Lyons, president and chief executive officer of GATX. "At Rail North America, fleet utilization remained high at 99.3% at the end of the first quarter and the renewal success rate during the quarter was 77.9%. The renewal lease rate change of GATX’s Lease Price Index was positive 34.3%. We continue to capitalize on current market conditions by increasing renewal lease rates and lengthening lease terms, thereby locking in high-quality, long-term cash flow.

"During the first quarter, we continued to identify attractive investment opportunities in North America. In addition to successfully placing deliveries of new railcars under our existing and new supply agreements, we acquired over 1,000 railcars in the secondary market that are on long-term leases with attractive rates.

"Rail International performed well, with Rail Europe experiencing higher renewal lease rates versus expiring rates for most car types. Furthermore, we are making progress on our goal of growing and diversifying our fleets in Europe and India, adding a combined total of nearly 1,000 newly built cars in the first quarter. At Portfolio Management, results were driven by improved performance at our Rolls-Royce and Partners Finance affiliates as global air travel continues to recover."

Mr. Lyons concluded, “Based on our solid start in the first quarter, our 2023 full-year earnings estimate remains unchanged at $6.50–$6.90 per diluted share, excluding the impact of Tax Adjustments and Other Items.”

RAIL NORTH AMERICA

Rail North America reported segment profit of $95.2 million in the first quarter of 2023, compared to $120.4 million in the first quarter of 2022. Lower segment profit was primarily the result of lower gains on asset dispositions, partially offset by higher lease revenue.

At March 31, 2023, Rail North America’s wholly owned fleet was composed of approximately 110,000 cars, including approximately 8,800 boxcars. The following fleet statistics and performance discussion exclude the boxcar fleet.

Fleet utilization was 99.3% at the end of the first quarter, compared to 99.5% at the end of the prior quarter and 99.3% at the end of the first quarter of 2022. During the first quarter of 2023, the GATX Lease Price Index (LPI), a weighted-average lease renewal rate for a group of railcars representative of Rail North America’s fleet, was positive 34.3%. This compares to an LPI of positive 29.7% in the prior quarter and positive 9.3% in the first quarter of 2022. The average lease renewal term for all cars included in the LPI during the first quarter was 37 months, compared to 34 months in the prior quarter and 30 months in the first quarter of 2022. The 2023 first-quarter renewal success rate was 77.9%, compared to 85.7% in the prior quarter, and 80.0% in the first quarter of 2022. Rail North America’s investment volume during the first quarter was $296.5 million.

Additional fleet statistics, including information on the boxcar fleet, and macroeconomic data related to Rail North America’s business are provided on the last page of this press release.

RAIL INTERNATIONAL

Rail International’s segment profit was $23.5 million in the first quarter of 2023, compared to $24.9 million in the first quarter of 2022. Compared to the prior year period, results were favorably impacted by more railcars on lease and negatively impacted by changes in foreign currency exchange rates. In the first quarter of 2023, we completed the sale of Rail Russia.

At March 31, 2023, GATX Rail Europe’s (GRE's) fleet consisted of approximately 28,500 cars. Utilization was 98.5%, compared to 99.3% at the end of the prior quarter and 99.0% at the end of the first quarter of 2022. Additional fleet statistics for GRE are provided on the last page of this press release.

PORTFOLIO MANAGEMENT

Portfolio Management reported segment profit of $28.3 million in the first quarter of 2023, compared to segment loss of $3.9 million in the first quarter of 2022. The 2023 first-quarter segment profit included a net negative impact of $1.6 million from Tax Adjustments and Other Items. The 2022 first-quarter segment profit included a net negative impact of $15.3 million from Tax Adjustments and Other Items. Additional details are provided in the attached Supplemental Information under Tax Adjustments and Other Items. Excluding these impacts, higher 2023 first-quarter segment profit was driven by a higher share of affiliates earnings from the Rolls-Royce and Partners Finance affiliates, due to improved performance across the existing engine leasing portfolio and higher remarketing income.

COMPANY DESCRIPTION

At GATX Corporation (NYSE:GATX), we empower our customers to propel the world forward. GATX leases transportation assets including railcars, aircraft spare engines and tank containers to customers worldwide. Our mission is to provide innovative, unparalleled service that enables our customers to transport what matters safely and sustainably while championing the well-being of our employees and communities. Headquartered in Chicago, Illinois since its founding in 1898, GATX has paid a quarterly dividend, uninterrupted, since 1919.

TELECONFERENCE INFORMATION

GATX Corporation will host a teleconference to discuss 2023 first-quarter results. Call details are as follows:

Tuesday, April 25, 2023

11 a.m. Eastern Time

Domestic Dial-In: 1-888-660-6118

International Dial-In: 1-929-203-1802

Replay: 1-800-770-2030 or 1-647-362-9199 / Access Code: 2548217

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. A replay will be available on the same site starting at 2 p.m. (Eastern Time), April 25, 2023.

AVAILABILITY OF INFORMATION ON GATX'S WEBSITE

Investors and others should note that GATX routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the GATX Investor Relations website. While not all of the information that the Company posts to the GATX Investor Relations website is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media and others interested in GATX to review the information that it shares on www.gatx.com under the “Investors” tab.

FORWARD-LOOKING STATEMENTS

Statements in this Earnings Release not based on historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and, accordingly, involve known and unknown risks and uncertainties that are difficult to predict and could cause our actual results, performance, or achievements to differ materially from those discussed. These include statements as to our future expectations, beliefs, plans, strategies, objectives, events, conditions, financial performance, prospects, or future events. 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,” “outlook,” “continue,” “likely,” “will,” “would”, and similar words and phrases. Forward-looking statements are necessarily based on estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Accordingly, you 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. We do not undertake any obligation to publicly update or revise these forward-looking statements.

The following factors, in addition to those discussed in our other filings with the SEC, including our Form 10-K for the year ended December 31, 2022, could cause actual results to differ materially from our current expectations expressed in forward-looking statements: the impact of the ongoing military action between Russia and Ukraine, including sanctions and countermeasures, on domestic and global economic and geopolitical conditions in general, including supply chain challenges and disruptions

the duration and effects of the global COVID-19 pandemic and measures taken in response, including adverse impacts on our operations, commercial activity, supply chain, the demand for our transportation assets, the value of our assets, our liquidity, and macroeconomic conditions

exposure to damages, fines, criminal and civil penalties, and reputational harm arising from a negative outcome in litigation, including claims arising from an accident involving transportation assets

inability to maintain our transportation assets on lease at satisfactory rates due to oversupply of assets in the market or other changes in supply and demand

a significant decline in customer demand for our transportation assets or services, including as a result of:

weak macroeconomic conditions or increased interest rates

weak market conditions in our customers' businesses

adverse changes in the price of, or demand for, commodities

changes in railroad operations, efficiency, pricing and service offerings, including those related to "precision scheduled railroading" or labor strikes or shortages

changes in, or disruptions to, supply chains

availability of pipelines, trucks, and other alternative modes of transportation

changes in conditions affecting the aviation industry, including reduced demand for air travel, geographic exposure and customer concentrations

other operational or commercial needs or decisions of our customers

customers' desire to buy, rather than lease, our transportation assets

higher costs associated with increased assignments of our transportation assets following non-renewal of leases, customer defaults, and compliance maintenance programs or other maintenance initiatives

events having an adverse impact on assets, customers, or regions where we have a concentrated investment exposure

financial and operational risks associated with long-term purchase commitments for transportation assets

reduced opportunities to generate asset remarketing income

inability to successfully consummate and manage ongoing acquisition and divestiture activities

reliance on Rolls-Royce in connection with our aircraft spare engine leasing businesses, and the risks that certain factors that adversely affect Rolls-Royce could have an adverse effect on our businesses

fluctuations in foreign exchange rates

prolonged inflation or deflation

inability to attract, retain, and motivate qualified personnel, including key management personnel

failure to successfully negotiate collective bargaining agreements with the unions representing a substantial portion of our employees

asset impairment charges we may be required to recognize

deterioration of conditions in the capital markets, reductions in our credit ratings, or increases in our financing costs

competitive factors in our primary markets, including competitors with significantly lower costs of capital

risks related to our international operations and expansion into new geographic markets, including laws, regulations, tariffs, taxes, treaties or trade barriers affecting our activities in the countries where we do business

changes in, or failure to comply with, laws, rules, and regulations

U.S. and global political conditions

inability to obtain cost-effective insurance

environmental liabilities and remediation costs

potential obsolescence of our assets

inadequate allowances to cover credit losses in our portfolio

operational, functional and regulatory risks associated with climate change, severe weather events and natural disasters, and other environmental, social and governance matters

inability to maintain and secure our information technology infrastructure from cybersecurity threats and related disruption of our business

changes in assumptions, increases in funding requirements or investment losses in our pension and post-retirement plans

inability to maintain effective internal control over financial reporting and disclosure controls and procedures

GATX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In millions, except per share data)

	Three Months Ended March 31
	2023			2022
Revenues
Lease revenue	$	302.0		$	283.3
Marine operating revenue		3.5			6.2
Other revenue		33.4			27.1
Total Revenues		338.9			316.6
Expenses
Maintenance expense		83.9			74.6
Marine operating expense		2.0			4.2
Depreciation expense		89.8			89.5
Operating lease expense		9.0			9.1
Other operating expense		11.0			10.7
Selling, general and administrative expense		50.4			47.2
Total Expenses		246.1			235.3
Other Income (Expense)
Net gain on asset dispositions		47.1			73.7
Interest expense, net		(59.0	)		(51.2	)
Other expense		(4.0	)		(2.0	)
Income before Income Taxes and Share of Affiliates’ Earnings		76.9			101.8
Income taxes		(20.2	)		(22.4	)
Share of affiliates’ earnings (losses), net of taxes		20.7			(3.6	)
Net Income	$	77.4		$	75.8

Share Data
Basic earnings per share	$	2.19		$	2.13
Average number of common shares		35.3			35.5

Diluted earnings per share	$	2.16		$	2.10
Average number of common shares and common share equivalents		35.8			36.0

Dividends declared per common share	$	0.55		$	0.52

GATX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In millions)

	March 31			December 31
	2023			2022
Assets
Cash and Cash Equivalents	$	177.4		$	303.7
Restricted Cash		0.2			0.3
Short-Term Investments		—			148.5
Receivables
Rent and other receivables		70.8			71.4
Finance leases (as lessor)		116.3			96.5
Less: allowance for losses		(6.0	)		(5.9	)
		181.1			162.0

Operating Assets and Facilities		11,961.9			11,675.0
Less: allowance for depreciation		(3,470.0	)		(3,424.7	)
		8,491.9			8,250.3
Lease Assets (as lessee)
Right-of-use assets, net of accumulated depreciation		235.4			243.5
		235.4			243.5

Investments in Affiliated Companies		597.6			575.1
Goodwill		118.3			117.2
Other Assets ($16.2 and $40.0 related to assets held for sale)		246.2			271.4
Total Assets	$	10,048.1		$	10,072.0

Liabilities and Shareholders’ Equity
Accounts Payable and Accrued Expenses	$	174.7		$	202.2
Debt
Commercial paper and borrowings under bank credit facilities		20.3			17.3
Recourse		6,360.9			6,431.5
		6,381.2			6,448.8
Lease Obligations (as lessee)
Operating leases		246.2			257.9
		246.2			257.9

Deferred Income Taxes		1,049.1			1,031.5
Other Liabilities		95.4			102.0
Total Liabilities		7,946.6			8,042.4
Total Shareholders’ Equity		2,101.5			2,029.6
Total Liabilities and Shareholders’ Equity	$	10,048.1		$	10,072.0

GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Three Months Ended March 31, 2023
(In millions)

	Rail North America			Rail International			Portfolio Management			Other		GATX Consolidated
Revenues
Lease revenue	$	215.1		$	70.4		$	8.3		$	8.2	$	302.0
Marine operating revenue		—			—			3.5			—		3.5
Other revenue		23.8			2.9			4.5			2.2		33.4
Total Revenues		238.9			73.3			16.3			10.4		338.9
Expenses
Maintenance expense		66.9			15.9			—			1.1		83.9
Marine operating expense		—			—			2.0			—		2.0
Depreciation expense		65.5			15.7			5.4			3.2		89.8
Operating lease expense		9.0			—			—			—		9.0
Other operating expense		7.0			2.2			0.9			0.9		11.0
Total Expenses		148.4			33.8			8.3			5.2		195.7
Other Income (Expense)
Net gain (loss) on asset dispositions		47.8			0.8			(1.5	)		—		47.1
Interest (expense) income, net		(42.3	)		(12.5	)		(5.7	)		1.5		(59.0	)
Other (expense) income		(0.4	)		(4.3	)		(0.5	)		1.2		(4.0	)
Share of affiliates' pre-tax (losses) earnings		(0.4	)		—			28.0			—		27.6
Segment profit	$	95.2		$	23.5		$	28.3		$	7.9	$	154.9
Less:
Selling, general and administrative expense													50.4
Income taxes (includes $6.9 related to affiliates' earnings)													27.1
Net income												$	77.4

Selected Data:
Investment volume	$	296.5		$	81.1		$	—		$	9.4	$	387.0

Net Gain (Loss) on Asset Dispositions
Asset Remarketing Income:
Net gains (losses) on disposition of owned assets	$	44.7		$	0.4		$	(0.4	)	$	—	$	44.7
Residual sharing income		0.1			—			0.1			—		0.2
Non-remarketing net gains (1)		3.0			0.4			—			—		3.4
Asset impairments		—			—			(1.2	)		—		(1.2	)
	$	47.8		$	0.8		$	(1.5	)	$	—	$	47.1
__________
(1) Includes net gains (losses) from scrapping of railcars.

GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Three Months Ended March 31, 2022
(In millions)

	Rail North America			Rail International			Portfolio Management			Other			GATX Consolidated
Revenues
Lease revenue	$	200.7		$	67.6		$	8.3		$	6.7		$	283.3
Marine operating revenue		—			—			6.2			—			6.2
Other revenue		23.0			2.3			—			1.8			27.1
Total Revenues		223.7			69.9			14.5			8.5			316.6
Expenses
Maintenance expense		59.9			14.0			—			0.7			74.6
Marine operating expense		—			—			4.2			—			4.2
Depreciation expense		63.5			18.0			5.0			3.0			89.5
Operating lease expense		9.1			—			—			—			9.1
Other operating expense		7.3			2.4			0.5			0.5			10.7
Total Expenses		139.8			34.4			9.7			4.2			188.1
Other Income (Expense)
Net gain on asset dispositions		71.6			1.0			0.9			0.2			73.7
Interest expense, net		(34.4	)		(11.2	)		(4.7	)		(0.9	)		(51.2	)
Other expense		(0.7	)		(0.4	)		(0.1	)		(0.8	)		(2.0	)
Share of affiliates' pre-tax losses		—			—			(4.8	)		—			(4.8	)
Segment profit (loss)	$	120.4		$	24.9		$	(3.9	)	$	2.8		$	144.2
Less:
Selling, general and administrative expense														47.2
Income taxes (includes $1.2 of income tax benefit related to affiliates' losses)														21.2
Net income													$	75.8

Selected Data:
Investment volume	$	280.4		$	78.9		$	—		$	11.1		$	370.4

Net Gain on Asset Dispositions
Asset Remarketing Income:
Net gains on disposition of owned assets	$	64.4		$	0.4		$	—		$	0.1		$	64.9
Residual sharing income		2.0			—			0.9			—			2.9
Non-remarketing net gains (1)		5.2			0.6			—			0.1			5.9
	$	71.6		$	1.0		$	0.9		$	0.2		$	73.7
__________
(1) Includes net gains (losses) from scrapping of railcars.

GATX CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION (UNAUDITED)
(In millions, except per share data)
Impact of Tax Adjustments and Other Items on Net Income⁽¹⁾
	Three Months Ended March 31
	2023			2022
Net income (GAAP)	$	77.4		$	75.8
Adjustments attributable to consolidated pre-tax income:
Gain on sale of Rail Russia at Rail International (2)	$	(0.3	)	$	—
Loss on Specialized Gas Vessels at Portfolio Management (3)		1.6			—
Total adjustments attributable to consolidated pre-tax income	$	1.3		$	—
Income taxes thereon, based on applicable effective tax rate	$	—		$	—
Other income tax adjustments attributable to consolidated income:
Income tax rate change (4)		—			(3.0	)
Total other income tax adjustments attributable to consolidated income	$	—		$	(3.0	)
Adjustments attributable to affiliates' earnings, net of taxes:
Aircraft spare engine impairment at RRPF (5)		—			11.5
Total adjustments attributable to affiliates' earnings, net of taxes	$	—		$	11.5
Net income, excluding tax adjustments and other items (non-GAAP)	$	78.7		$	84.3

Impact of Tax Adjustments and Other Items on Diluted Earnings per Share⁽¹⁾

	Three Months Ended March 31
	2023		2022
Diluted earnings per share (GAAP)	$	2.16	$	2.10
Diluted earnings per share, excluding tax adjustments and other items (non-GAAP)	$	2.20	$	2.34

_________
(1)		In addition to financial results reported in accordance with GAAP, we compute certain financial measures using non-GAAP components. Specifically, we exclude the effects of certain tax adjustments and other items for purposes of presenting net income and diluted earnings per share because we believe these items are not attributable to our business operations. Management utilizes net income, excluding tax adjustments and other items, when analyzing financial performance because such amounts reflect the underlying operating results that are within management’s ability to influence. Accordingly, we believe presenting this information provides investors and other users of our financial statements with meaningful supplemental information for purposes of analyzing year-to-year financial performance on a comparable basis and assessing trends.
(2)		In the third quarter of 2022, we made the decision to exit our rail business in Russia ("Rail Russia). In the first quarter of 2023, we sold Rail Russia and recorded a gain on the final sale of this business.
(3)		In the second quarter of 2022, we made the decision to sell the Specialized Gas Vessels. In the first quarter of 2023, we recorded losses associated with these assets.
(4)		Deferred income tax adjustment due to an enacted corporate income tax rate reduction in Austria in 2022.
(5)		Impairment losses related to aircraft spare engines in Russia that RRPF does not expect to recover.

GATX CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION (UNAUDITED)
(In millions, except leverage)


	3/31/2023			12/31/2022			9/30/2022			6/30/2022			3/31/2022
Total Assets, Excluding Cash and Short-Term Investments, by Segment
Rail North America	$	6,610.8		$	6,439.1		$	6,405.4		$	6,347.2		$	6,183.7
Rail International		1,801.2			1,731.3			1,554.3			1,634.5			1,677.9
Portfolio Management		1,089.6			1,084.8			970.9			1,010.3			1,031.5
Other		368.9			364.3			348.2			351.7			366.0
Total Assets, excluding cash and short-term investments	$	9,870.5		$	9,619.5		$	9,278.8		$	9,343.7		$	9,259.1

Debt and Lease Obligations, Net of Unrestricted Cash and Short-Term Investments
Unrestricted cash and short-term investments	$	(177.4	)	$	(452.2	)	$	(596.3	)	$	(180.3	)	$	(649.3	)
Commercial paper and bank credit facilities		20.3			17.3			16.3			20.0			18.6
Recourse debt		6,360.9			6,431.5			6,353.1			5,964.4			6,256.9
Operating lease obligations		246.2			257.9			259.0			266.7			273.4
Total debt and lease obligations, net of unrestricted cash and short-term investments	$	6,450.0		$	6,254.5		$	6,032.1		$	6,070.8		$	5,899.6
Total recourse debt (1)	$	6,450.0		$	6,254.5		$	6,032.1		$	6,070.8		$	5,899.6
Shareholders’ Equity	$	2,101.5		$	2,029.6		$	1,940.5		$	1,981.5		$	2,060.8
Recourse Leverage (2)		3.1			3.1			3.1			3.1			2.9

_________

(1)

Includes recourse debt, commercial paper and bank credit facilities, and operating and finance lease obligations, net of unrestricted cash and short-term investments.

(2)

Calculated as total recourse debt / shareholder's equity.

Reconciliation of Total Assets to Total Assets, Excluding Cash and Short-Term Investments
Total Assets	$	10,048.1		$	10,072.0		$	9,875.4		$	9,524.2		$	9,908.6
Less: cash and short-term investments		(177.6	)		(452.5	)		(596.6	)		(180.5	)		(649.5	)
Total Assets, excluding cash and short-term investments	$	9,870.5		$	9,619.5		$	9,278.8		$	9,343.7		$	9,259.1

GATX CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION (UNAUDITED)
(Continued)

	3/31/2023		12/31/2022		9/30/2022		6/30/2022		3/31/2022
Rail North America Statistics
Lease Price Index (LPI) (1)
Average renewal lease rate change	34.3	%	29.7	%	37.5	%	18.3	%	9.3	%
Average renewal term (months)	37		34		33		34		30
Renewal Success Rate (2)	77.9	%	85.7	%	87.2	%	87.7	%	80.0	%
Fleet Rollforward (3)
Beginning balance	100,954		101,289		101,272		100,452		101,570
Cars added	1,816		583		772		1,414		943
Cars scrapped	(324	)	(486	)	(506	)	(594	)	(547	)
Cars sold	(1,227	)	(432	)	(249	)	—		(1,514	)
Ending balance	101,219		100,954		101,289		101,272		100,452
Utilization	99.3	%	99.5	%	99.6	%	99.4	%	99.3	%
Average active railcars	100,552		100,618		100,783		100,079		100,253
Boxcar Fleet Rollforward
Beginning balance	8,663		10,224		10,315		10,283		12,946
Cars added	229		106		—		85		352
Cars scrapped	(103	)	(94	)	(91	)	64		(109	)
Cars sold	—		(1,573	)	—		(117	)	(2,906	)
Ending balance	8,789		8,663		10,224		10,315		10,283
Utilization	100.0	%	99.9	%	100.0	%	99.9	%	99.8	%
Average active railcars	8,720		9,032		10,267		10,239		10,856
Rail Europe Statistics
Fleet Rollforward
Beginning balance	28,005		27,701		27,470		27,192		27,109
Cars added	502		362		277		347		225
Cars scrapped/sold	(46	)	(58	)	(46	)	(69	)	(142	)
Ending balance	28,461		28,005		27,701		27,470		27,192
Utilization	98.5	%	99.3	%	99.4	%	99.9	%	99.0	%
Average active railcars	27,931		27,658		27,489		27,158		26,850

_________
(1)		GATX's Lease Price Index (LPI) is an internally-generated business indicator that measures lease rate pricing on renewals for our North American railcar fleet, excluding boxcars. GATX calculates the index using the weighted-average lease rate for a group of railcar types that GATX believes best represents its overall North American fleet, excluding boxcars. The average renewal lease rate change is reported as the percentage change between the average renewal lease rate and the average expiring lease rate, weighted by fleet composition. The average renewal lease term is reported in months and reflects the average renewal lease term of railcar types in the LPI, weighted by fleet composition.
(2)		The renewal success rate represents the percentage of railcars on expiring leases that were renewed with the existing lessee. The renewal success rate is an important metric because railcars returned by our customers may remain idle or incur additional maintenance and freight costs prior to being leased to new customers.
(3)		Excludes boxcar fleet.

GATX CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION (UNAUDITED)
(Continued)

	3/31/2023		12/31/2022		9/30/2022		6/30/2022		3/31/2022
Rail North America Industry Statistics
Manufacturing Capacity Utilization Index (1)	79.8	%	78.9	%	80.1	%	79.8	%	79.9	%
Year-over-year Change in U.S. Carloadings (excl. intermodal) (2)	(0.3	)%	(0.3	) %	0.1	%	(0.1	) %	2.6	%
Year-over-year Change in U.S. Carloadings (chemical) (2)	(6.8	) %	—	%	3.1	%	4.9	%	9.4	%
Year-over-year Change in U.S. Carloadings (petroleum) (2)	12.3	%	(7.6	)%	(10.4	)%	(13.1	)%	(15.3	)%
Production Backlog at Railcar Manufacturers (3)	n/a (4)		58,898		61,415		47,461		46,208

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(1)		As reported and revised by the Federal Reserve.
(2)		As reported by the Association of American Railroads (AAR).
(3)		As reported by the Railway Supply Institute (RSI).
(4)		Not available, not published as of the date of this release.

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