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GATX

gmt · NYSE Communication Services
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Ticker gmt
Exchange NYSE
Sector Communication Services
Industry Rental & Leasing Services
Employees 1001-5000
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FY2005 Annual Report · GATX
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• SINCE 1898 •

ANNUAL REPORT 2005

GATX Corporation provides lease financing and related services to customers
operating rail, air, 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, Illinois since its founding
in 1898 and has traded on the New York Stock Exchange since 1916.

GATX strives to:
(cid:1) Provide an attractive, risk-adjusted return to shareholders
(cid:1) Be an excellent operator focused on providing quality services to customers
(cid:1) Provide clear direction and challenging opportunities to employees  

NYSE:GMT

GATX ANNUAL REPORT  2005

FINANCIAL HIGHLIGHTS

in millions, except per share data

Gross income 

(Loss) income from continuing operations 

Income from discontinued operations 

Net (loss) income

2005

2004

2003

$1,134.6

$1,232.1

$1,087.6

(15.1) 

0.8 

(14.3) 

158.5 

11.1 

169.6

61.7 

15.2 

76.9 

Per diluted share net (loss) income from continuing operations

$ (0.30) 

$  2.86 

$

1.24 

Per diluted share net (loss) income 

(0.29) 

3.04 

1.53 

Income per share
( $ per diluted share ) 

Cash from continuing operations and portfolio proceeds*
( $ millions ) 

cash from continuing operations
portfolio proceeds

2001
$3.56

2002

2003

2004

2005

2001

2002

2003

2004

2005

$3.04

$727

$589

$541

$1.53

–

$99

($0.29)

$209

$267

$302

$356

$285

$250

Portfolio investments 
and capital expenditures*
( $ millions ) 

2001
$1,360

2002

2003

2004

2005

$1,018

$760

$629

$521

 *excludes discontinued operations

(cid:1) RAIL (cid:2) With one of the largest lease
fleets in the world, GATX Rail owns
or manages approximately 159,000
railcars and 500 locomotives on lease
to shippers and railroads. GATX Rail
provides maintenance, regulatory,
engineering and financial expertise
to meet diverse customer needs.
GATX Rail also has a growing pres-
ence in Europe with operations or
affiliates in Austria, Germany, Poland
and Switzerland. 

GATX asset mix
( balance sheet and off balance sheet assets as of 12/31/05 ) 

GATX North American railcar utilization
( as of 12/31 ) 

    Rail  61% 
  Air  27% 

Specialty  7%
Corporate & Other  5% 

2001

2002

2003

2004

98%

2005

98%

93%

90%

90%

(cid:1) AIR (cid:2) GATX Air owns or manages
more than 200 aircraft on lease 
to airlines worldwide and owns 50% 
of one of the world’s largest aircraft
engine lessors. GATX Air leverages
37 years of aircraft management
experience for third-party asset 
owners, providing lease management,
remarketing and portfolio adminis-
tration services.

(cid:1) SPECIALTY (cid:2) With more than 30
years of equipment expertise and
remarketing skills, GATX Specialty
owns a portfolio of shipping/marine
vessels and industrial equipment
assets. GATX Specialty also manages
a portfolio of diversified assets for
third-party owners, providing asset
management, advisory and remar-
keting services to investors.

page 1

DEAR SHAREHOLDERS

In my first shareholder letter as the CEO of GATX, I will briefly
outline the strategy for our businesses, recap 2005’s performance
and explain what you can expect from GATX in the future.

The foundation of GATX’s business is and always 
has been the leasing of long-lived, widely-used assets.
These assets, such as railcars, locomotives, aircraft,
marine vessels and industrial equipment, are critical
to our customers’ operations. In refining GATX’s
strategy, we looked ahead to evolving trends in our
businesses as well as looking back on the keys to 
our 107 years of success. During our history, GATX
has participated in a variety of other markets and
businesses — from manufacturing to banking, petro-
leum pipelines to venture lending — with mixed
success. These were businesses in which we had no
clear advantage. We have exited these areas and 
refocused on GATX’s strengths: providing long-lived,
widely-used assets which we uniquely understand
and where we provide valuable services in connection
with these assets. These two keys are also the overrid-
ing factors in deciding how we invest going forward. 

These keys are most evident in our Rail business,

where we have been a market leader in leasing rail-
cars for over 107 years. Our scale, excellent service
and extensive market knowledge have resulted in
extremely long-term customer relationships and a
premium financial return — a 16% return on equity 
in 2005. Our global Rail strategy is to maximize the
value of our fleet, our customer relationships and 
our infrastructure. We will do this through a variety
of steps, from optimizing car acquisition costs to
acquiring our customers’ owned railcar fleets to
making investments in systems and people which will
increase the efficiency of our maintenance network.
These steps should improve our risk profile, enable
us to effectively manage through the inevitable
industry cycles and ensure we maximize the risk-
adjusted return on our most valuable franchise.

We are working to make these keys more evident

in our Air business. We are currently not earning an
acceptable return on capital employed in this business,
nor do we have the scale to compete with the market
leaders in ordering large numbers of new aircraft. Our
strategy focuses on turning GATX Air into a more
service-oriented business by increasing the number
of aircraft that we manage for others while optimizing
our existing fleet to take advantage of the ongoing
market recovery. This strategy prompted our recent
decision to sell $450 million in older air assets.
Removing these aircraft from our portfolio enables us
to lower the volatility in our Air business and focus
more of our existing resources on managing aircraft
for others, and should enable us to earn a more attrac-
tive return in the Air business.

Our Specialty business is currently producing

an extremely attractive return. This business is
characterized by marine and industrial equipment
assets — both owned and managed — that fit GATX’s
two keys for success. We also believe there is an
opportunity to use our long-standing Rail customer
relationships to generate investment opportunities
for Specialty, and we will pursue this linkage in 2006. 

We began implementing our new strategy in
2005, a year in which we recorded a loss of $15.1
million. This loss was due entirely to the previously
mentioned strategic decision to sell $450 million of
older aircraft in our Air business. Notwithstanding,
it was an excellent year for our other businesses. 

Rail’s net income was up 35% in 2005, reflecting

an 11% revenue increase as we took advantage of 
an improving market, and helped by nearly $1 billion 
of new investment in the last two years. I said a 
key for GATX is to possess a unique understanding 

Photos below from left: JEROME K. WELSCH, JR. President, American Steamship Company   WILLIAM M. MUCKIAN Vice President, Controller and Chief
Accounting Officer    JAMES F. EARL Executive Vice President, GATX Rail    DEBORAH A. GOLDEN Vice President, General Counsel and Secretary  
JIM MORRIS Senior Vice President - Commercial, GATX Air   SUSAN A. NOACK Senior Vice President - Operations, GATX Air   GAIL L. DUDDY Senior Vice
President, Human Resources   WILLIAM J. HASEK  Vice President and Treasurer   S. YVONNE SCOTT Vice President and Chief Information Officer  
BRIAN A. KENNEY Chairman, President and Chief Executive Officer   ROBERT C. LYONS Vice President and Chief Financial Officer   CURT F. GLENN
Executive Vice President, GATX Specialty 

of what drives rail asset value, and the single most
important decision we can make when investing in
30- to 50-year assets is to buy that asset at an advan-
taged, attractive price. That’s exactly what Rail did
with its Committed Railcar Purchase Program in
the last few years. Maintaining the investment disci-
pline to purchase the right railcars at the right prices
will continue to be key in achieving an attractive, risk-
adjusted return in the long run.

further — in turn enhancing our growth prospects.
GATX will also be a better operator, more efficient in
providing quality services to our customers. We began
laying the groundwork for this vision in 2005. While
we made good progress in the first year, this progress
needs to be measured over a number of years, not just
one, and through a complete business cycle, not just
during an improving economy. This long-term view is
the way a company in our business should be measured.

Specialty continued its excellent performance

In 2005, GATX saw the end of an era with the

in 2005, with especially strong results provided by
our marine investments due to our attractively-priced
investment in the vessels and the strong global 
market for shipping rates. Our investments in marine
and other long-lived equipment resulted in lease
income growth in that segment for the first time in
several years.

Aside from the loss related to our decision to

sell older aircraft, the Air group responded well to
the change in strategy in 2005. Air experienced a
35% increase in fee income versus 2004. They earned
these fees from managing our traditional partner-
ships, selling third-party owned aircraft out of troubled
carriers and managing aircraft that are resident in
troubled carriers — all good progress for the first year
of a new strategy.

American Steamship Company, our Great Lakes

shipping company, had another strong year with a
nearly 25% improvement in gross income stemming
from increased freight rates. ASC also continued 
to strengthen its operational efficiency while taking
advantage of an improved market.

What is the vision for GATX in the years to come?

With continued disciplined investment and execution
of the strategy described above, we believe we can offer
a more attractive, risk-adjusted return on equity.
This return should be less volatile through the years
as we position our businesses to better manage
through economic cycles. A less volatile return should
allow our credit ratings and cost of capital to improve

retirement of Ron Zech, the sixth Chairman in our 107-
year history. Ron was our CEO for 10 years and was
instrumental in refocusing the Company on its core
businesses. I thank him for his leadership, encour-
agement and friendship.  All of us at GATX wish him
well in his retirement.  

I would also like to thank our Board of Directors

for their guidance and support. I look forward to 
continuing to work closely with them as we execute
our strategy. Many thanks also to our shareholders 
for your continued support of GATX. We will strive to
earn the confidence you have placed in us.

Lastly, I want to mention the one enduring

strength that has enabled GATX to survive and thrive
for more than 100 years: our employees. Our employees
have been forced to be more intense and creative in
order to compete effectively. This creativity manifests
itself in everything from new railcar engineering inno-
vations to partnering solutions with other investors.
My challenge as the new CEO is to harness that 
creativity to grow GATX in a way our shareholders
value. Execution will be the key. And I believe our
employees will execute.

Brian A. Kenney
Chairman and Chief Executive Officer

GATX ANNUAL REPORT  2005

LONG-LIVED ASSETS ARE THE 
CENTERPIECE OF OUR BUSINESS

Long-lived, widely-used assets — tank cars, freight cars,
locomotives, commercial aircraft, shipping vessels,
industrial equipment — assets that support the backbone
of the North American and global economies. These are 
the assets that built GATX.

From that small lease fleet, GATX Rail has grown to

own, manage or have an interest in more than 159,000
railcars and 500 locomotives leased to more than 1,000
customers worldwide.

Throughout our history, we have achieved our greatest

GATX was born as a tank car leasing company in
Chicago in 1898. Max Epstein, the founder of GATX, began
with 28 second-hand refrigerator cars and five tank cars.

success with long-lived, widely-used assets in which we
have unique knowledge. Those assets are the centerpiece
of GATX — and have been for more than 100 years.

page 5

EXPERIENCE IS KEY
IN EACH OF OUR MARKETS

When we invest in an asset, we know that we may be work-
ing with that asset for decades to come. We know the needs
of the customers that will use the asset. We know the
expected maintenance schedule and the current regulatory
environment surrounding the asset. We know how the
asset will perform for us during the up-and-down cycles
of the market. And most importantly, we understand the
value of that asset from initial investment to end of life.

Railcars can operate for 30–50 years, aircraft 25 years
and ships more than 50 years. At GATX, we have decades
of experience in each of our asset classes and have the
expertise our customers rely upon. When we invest in 30-
to 50-year assets, knowing when to invest and at what price
is key to our success.

This unique asset knowledge has allowed us to success-

fully compete for more than 100 years.

page 7

LONG-TERM CUSTOMER RELATIONSHIPS 
ARE OUR FOUNDATION

We have over 1,000 customers. We understand our cus-
tomers’ specific needs and provide the right assets for their
particular industry, commodity, facility and location.
While the average lease term on our assets is around

four to five years, many of our customer relationships
span decades. In Rail, our top ten customers have been
with GATX an average of 50 years. 

Our customers require their full-service railcar provider

be committed for the long term, possess breadth and
depth of knowledge, and be responsive and flexible. GATX
understands these expectations and provides customers
with the skill, quality and reliability that is critical to the
success of their operations.

GATX ANNUAL REPORT  2005

WE LEVERAGE OUR EXPERIENCE 
TO SERVE OTHER ASSET OWNERS

With our decades of experience in each of our markets,
our customers rely on us not only to provide the right
asset at the right time at the right price, but also to manage
assets that they own. For example, GATX has more than
37 years of experience in the aircraft leasing business, man-
aging more than 100 of our own aircraft and more than
60 aircraft for third-party owners. We treat each managed

aircraft with the same care and commitment that we give
our owned fleet.

In each of our businesses — Rail, Air and Specialty —
we leverage our experience, expertise, services and systems
to provide third-party owners with asset management
they can trust.

SERVICE IS CRITICAL

Proper maintenance and technical services are crucial 
to providing our customers with a safe and reliable asset.  
In Rail, our nine major maintenance centers in North
America and our fleet of mobile repair units provide our
customers with the critical care needed to maintain and
extend the life of the railcars. Our North American main-
tenance network repairs nearly 20,000 cars per year; 
the mobile repair units another 40,000; and in Europe, we
service an additional 10,000 cars. GATX manages this 
maintenance volume while providing experienced, reliable
and efficient maintenance services.

Our services extend beyond physical railcar repair. Our

team of GATX engineers works with our customers to
design cars to meet their specific requirements. We also
provide customers with regulatory testing services and
training, and our financial experts provide innovative
leasing options.

Our commitment to excellent service has been a key to our
success, reputation and long-term customer relationships.

page 13

GATX IS BUILT ON MORE THAN A CENTURY OF 
HARD-WORKING, KNOWLEDGEABLE EMPLOYEES 

Our assets are not just made of steel. We also have highly-
skilled individuals working together to meet the complex
needs of our customers.  

Our experienced sales and marketing staff are key to

maintaining strong, long-term customer relationships.
We employ engineers and other technical experts to identify
the right asset and customize it to meet our customers’
needs.  We have mechanics and steelworkers to efficiently
inspect, maintain and repair our assets. Our financial 
and valuation professionals develop innovative leasing

solutions. And our tax, legal, leasing and accounting 
specialists provide support for both our owned portfolio
and managed assets. Each group works in concert to 
provide our customers with the total solutions they require
and have come to expect from GATX.

What began with Max Epstein in Chicago in 1898 has

now expanded with more than 1,800 hard-working,
knowledgeable employees across North America, Europe
and Asia.

GATX ANNUAL REPORT  2005

Ron Ciancio, General Counsel of
GATX Corporation, announced his
decision to retire this year. Ron has
been with GATX since 1981 and 
has been an invaluable advisor, coun-
selor, mentor and friend. We relied
not only on Ron’s legal knowledge,
business judgment and tireless 
dedication, but also his dry wit and
keen sense of humor. We tried to
prevent this day from coming, but
know how much Ron has looked 
forward to his retirement and we
wish him all the best.

page 15

DIRECTORS AND OFFICERS

BOARD OF DIRECTORS

Rod F. Dammeyer (1,2)

President
CAC, L.L.C.

James M. Denny (2,3)

Retired: Former Vice Chairman
Sears, Roebuck and Co.

Richard Fairbanks (3)

Counselor
Center for Strategic & International Studies

Deborah M. Fretz (A)

President and Chief Executive Officer
Sunoco Logistics Partners, L.P.

Miles L. Marsh (2,3)

Former Chairman and Chief Executive Officer
Fort James Corporation

Mark G. McGrath (3)

Retired: Former Director
McKinsey & Company

Michael E. Murphy (1,2)

Retired: Former Vice Chairman and 
Chief Administrative Officer
Sara Lee Corporation

Casey J. Sylla (1)

Chairman and President
Allstate Financial

Brian A. Kenney

Chairman, President and Chief Executive Officer
GATX Corporation

OFFICERS

Brian A. Kenney

Chairman, President and Chief Executive Officer

Robert C. Lyons

Vice President and Chief Financial Officer

Gail L. Duddy

Senior Vice President —Human Resources

Deborah A. Golden

Vice President, General Counsel and Secretary

William J. Hasek

Vice President and Treasurer

William M. Muckian

Vice President, Controller and Chief Accounting Officer

S. Yvonne Scott

Vice President and Chief Information Officer

BUSINESS EXECUTIVES

James F. Earl

GATX Rail

Jim Morris

GATX Air

Susan A. Noack

GATX Air

Curt F. Glenn

GATX Specialty

Jerome K. Welsch, Jr.

American Steamship Company

(A) Lead Director
(1) Member, Audit Committee
(2) Member, Compensation Committee
(3) Member, Governance Committee
For more information about GATX’s Corporate Governance, see www.gatx.com — Investor Relations — Corporate Governance.
As required by Section 303A.12(a) of the New York Stock Exchange (the “Exchange”) Listed Company Manual, the Company’s Chief Executive Officer has
certified to the Exchange that, as of the date of the certification, he was not aware of any violation by the Company of the Exchange’s Corporate Governance
listing standards. In addition, the Company’s Chief Executive Officer and Chief Financial Officer have each filed with the Securities and Exchange Commission
all required certifications pursuant to §§ 302 and 906 of the Sarbanes-Oxley Act of 2002. 

GATX ANNUAL REPORT  2005

CORPORATE INFORMATION

Annual Meeting
Friday, April 28, 2006, 9:00 a.m. Central Time
Northern Trust Company
Assembly Room, Sixth Floor
50 South LaSalle Street, Chicago, Illinois 60675

GATX Corporation welcomes and encourages questions and
comments from its shareholders, potential investors, finan-
cial professionals, and the public at large. To better serve
interested parties, the following GATX personnel may be con-
tacted by letter, telephone, e-mail, and/or fax.

Shareholder Inquiries
Inquiries regarding dividend checks, the dividend reinvest-
ment plan, stock certificates, replacement of lost certificates,
address changes, account consolidation, transfer procedures,
and year-end tax information should be addressed to GATX
Corporation’s Transfer Agent and Registrar:

Mellon Investor Services LLC
480 Washington Boulevard
Jersey City, New Jersey 07310
Telephone: (866) 767-6259
TDD for Hearing Impaired: (800) 231-5469
Foreign Shareholders: (201) 680-6578
TDD Foreign Shareholders: (201) 680-6610
Internet: www.melloninvestor.com

Information Relating to Shareholder Ownership, 
Dividend Payments, or Share Transfers
Lisa M. Ibarra, Assistant Secretary
Telephone: (312) 621-6603
Fax: (312) 621-6647
E-mail: lisa.ibarra@gatx.com

Financial Information and Press Releases
A copy of the Company’s Annual Report on Form 10-K for 2005
and selected other information are available without charge.

Corporate information and press releases may be found at
GATX’s website, www.gatx.com. Requests for information or
brochures may be made through the site, and many GATX
publications may be directly viewed or downloaded. A variety
of current and historical financial information, press releases,
and photographs are also available at this site.

To Request Published Financial Information
and Financial Reports
GATX Corporation
Investor Relations Department
500 West Monroe Street, Chicago, Illinois 60661-3676
Telephone: (800) 428-8161
Fax: (312) 621-6648
E-mail: ir@gatx.com

Request Line for Materials
(312) 621-6300

Analysts, Institutional Shareholders, and 
Financial Community Professionals’ Inquiries
Rhonda S. Johnson, Director, Investor Relations
Telephone: (312) 621-6262
Fax: (312) 621-6648
E-mail: rhonda.johnson@gatx.com

Individual Investors’ Inquiries
Irma Dominguez, Investor Relations Coordinator
Telephone: (312) 621-8799
Fax: (312) 621-6648
E-mail: irma.dominguez@gatx.com

Questions Regarding Sales, Service, Lease 
Information, or Customer Solutions
GATX Rail: (312) 621-6200
GATX Air: (415) 955-3200
GATX Specialty: (415) 955-3200
American Steamship Company: (716) 635-0222

Independent registered public accounting firm
Ernst & Young LLP

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 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. These risks, uncertainties and other factors should be carefully considered in
evaluating the forward-looking statements. The forward-looking statements included in this annual report are made only as of the date of this report, and
we undertake no obligation to update these forward-looking statements to reflect subsequent events or circumstances.

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GATX CORPORATION

500 West Monroe Street
Chicago, IL 60661-3676
312 621 6200
800 428 8161
www.gatx.com
NYSE:GMT

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