GATX Corp. (NYSE:GATX) Q4 2015 Earnings Conference Call - Final Transcript

Jan 21, 2016 • 11:00 am ET

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GATX Corp. (NYSE:GATX) Q4 2015 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day everyone and welcome to the GATX Fourth Quarter Conference Call. Today's call is being recorded.

And at this time I'd like to turn the conference over to Chris LaHurd. Please go ahead.

Executive
Christopher LaHurd

Thank you. Good morning, everyone. And thank you for joining us for our fourth quarter and 2015 year end conference call. With me today are Brian Kenny, President and Chief Executive Officer; Rob Lyons, Executive Vice President and Chief Financial Officer; and Tom Ellman, Executive Vice President and President of Rail North America. I'll provide a very brief overview of the numbers and then Brian will discuss 2015 as well as the year ahead. Following Brian's comments, we will open it up for Q&A.

Before we begin, any forward looking statement made on this call represents our best judgement as to what may occur in the future. We have bases for looking statements on information currently available and disclaim any intention or obligation to update or revise the statements to reflect subsequent events or circumstances. The company's actual results will depend on a number of competitive and economic factors, some of which may be outside the control of the company. For more information, refer to our 2014 form 10-K. for discussion of these factors. You can find this report as well as other information about the company on our website www.gatx.com.

Today, GATX reported 2015 fourth quarter net income of $58.2 million, or $1.37 per diluted share. This compares to 2014 fourth quarter net income of $58.5 million, or $1.30 per diluted share. 2015 fourth quarter results include net negative impacts from the exit of portfolio management's marine investments, which we outlined at the end of the third quarter and other items of $3 million or $0.07 per diluted share.

We reported net income of $205.3 million, or $4.69 per diluted share for the full year 2015. This compares to net income of $205 million, or $4.48 per diluted share for 2014. 2015 full year results, including net negative impact from the exit of portfolio management's Marina investments, and other items of $29.6 million, or $0.68 per diluted share. So, rather than me go through a duper 2015 review, we thought it'd be more beneficial, more valuable for Brian to discuss 2015 and the challenges and opportunities we anticipate in 2016.

So with that, I'll turn it over to Brian.

Executive
Brian Kenney

Yes, Thanks, Chris. So what I want to do is provide some color on our 2016 earnings outlook. Now obviously these are very volatile times among other things, we have a slowing Chinese economy. We have falling commodity prices, we have oil prices below $30 a barrel, we're facing an industry with an oversupply of railcars and you have the worst start to the year in the history of the US financial markets.

But despite all that, we're entering the year in great condition as Chris outlined, as you saw in the press release, our worldwide rail business had another record year in 2015 and we're sitting