GATX Corporation (GMT) has reported 142.28 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $95.70 million, or $2.36 a share in the quarter, compared with $39.50 million, or $0.91 a share for the same period last year. Revenue during the quarter dropped 6.03 percent to $362.90 million from $386.20 million in the previous year period. Gross margin for the quarter contracted 21 basis points over the previous year period to 78.07 percent. Total expenses were 96.91 percent of quarterly revenues, up from 94.85 percent for the same period last year. That has resulted in a contraction of 207 basis points in operating margin to 3.09 percent.
Operating income for the quarter was $11.20 million, compared with $19.90 million in the previous year period.
Brian A. Kenney, president and chief executive officer at GATX stated, “Market dynamics in the North American rail industry are similar to recent quarters. A growing oversupply of railcars, fewer railcar loadings, and improved railroad velocity continue to present significant challenges. Railcar lessors are aggressively attempting to place new deliveries and their existing idle railcars, resulting in declining lease rates. In the third quarter, the renewal lease rate change of GATX’s Lease Price Index decreased by 21.4%, the average renewal term was 29 months, and our renewal success rate was 74.1%.
Working capital increases sharply
GATX Corporation has recorded an increase in the working capital over the last year. It stood at $452.90 million as at Sep. 30, 2016, up 290.43 percent or $336.90 million from $116 million on Sep. 30, 2015.
Debt comes down marginally
GATX Corporation has recorded a decline in total debt over the last one year. It stood at $4,224.60 million as on Sep. 30, 2016, down 1.80 percent or $77.50 million from $4,302.10 million on Sep. 30, 2015. Long-term debt stood at $4,224.60 million as on Sep. 30, 2016. Total debt was 59.59 percent of total assets as on Sep. 30, 2016, compared with 62.31 percent on Sep. 30, 2015. Debt to equity ratio was at 3.08 as on Sep. 30, 2016, down from 3.39 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 0.31 for the quarter from 0.53 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
