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W W W . G A T X . C O M
GATX CORPORATION
222 West Adams Street
Chicago, IL 60606-5314
312-621-6200
800-428-8161
NYSE:GMT
2 0 1 0 A N N U A L R E P O R T
F I N A N C I A L H I G H L I G H T S
G A T X C O R P O R A T I O N ( N Y S E : G M T )
provides leasing 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, Illinois since its founding in 1898 and has traded
on the New York Stock Exchange since 1916.
in millions, except per share data
Gross income
Net income
Per diluted share net income
excluding tax benefits and other items(a)
2008
2009
2010
$ 1,443.1
194.8
3.88
$
$ 1,153.9
81.4
1.70
$
$ 1,204.9
80.8
1.72
$
Net income
Per diluted share net income
$
$
174.9
3.49
$
$
94.7
1.97
$
$
74.6
1.59
(a) The items for each year noted are referred to as “Tax Benefits and Other Items.”
- Results for 2010 included the favorable resolution of a litigation matter, certain tax benefits and negative fair-value
adjustments of certain interest rate swaps at GATX’s European rail affiliate, AAE Cargo AG (“AAE”).
- Results for 2009 included negative fair-value adjustments on the AAE interest rate swaps and realized foreign tax credits.
- Results for 2008 included a benefit from the reversal of tax reserves, a gain on the sale of an office building, the reversal
of environmental reserves and negative fair-value adjustments on the AAE interest rate swaps.
Income per Diluted Share
Investment Volume
Excluding tax benefits and other items(a)
Millions
$3.49
$1.97
$1.59
2008
2009
2010
Return on Equity
$800
600
400
200
0
$781
$480
$585
2008
2009
2010
Cash from Operations
and Portfolio Proceeds
Excluding tax benefits and other items(a)
Millions
15%
9%
7%
2008
2009
2010
$400
300
200
100
0
$364
$156
Cash from
Operations
$265
$242
$68
$84
Portfolio
Proceeds
2008
2009
2010
$4.00
3.00
2.00
1.00
0
20%
15%
10%
5%
0
G A T X C O R P O R A T I O N ( N Y S E : G M T )
provides leasing 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, Illinois since its founding in 1898 and has traded
on the New York Stock Exchange since 1916.
in millions, except per share data
Gross income
Net income
Per diluted share net income
excluding tax benefits and other items(a)
2008
2009
2010
$ 1,443.1
194.8
3.88
$
$ 1,153.9
81.4
1.70
$
$ 1,204.9
80.8
1.72
$
Net income
Per diluted share net income
$
$
174.9
3.49
$
$
94.7
1.97
$
$
74.6
1.59
(a) The items for each year noted are referred to as “Tax Benefits and Other Items.”
- Results for 2010 included the favorable resolution of a litigation matter, certain tax benefits and negative fair-value
adjustments of certain interest rate swaps at GATX’s European rail affiliate, AAE Cargo AG (“AAE”).
- Results for 2009 included negative fair-value adjustments on the AAE interest rate swaps and realized foreign tax credits.
- Results for 2008 included a benefit from the reversal of tax reserves, a gain on the sale of an office building, the reversal
of environmental reserves and negative fair-value adjustments on the AAE interest rate swaps.
Income per Diluted Share
Investment Volume
Excluding tax benefits and other items(a)
Millions
$3.49
$1.97
$1.59
2008
2009
2010
Return on Equity
$800
600
400
200
0
$781
$480
$585
2008
2009
2010
Cash from Operations
and Portfolio Proceeds
Excluding tax benefits and other items(a)
Millions
15%
9%
7%
2008
2009
2010
$400
300
200
100
0
$364
$156
Cash from
Operations
$265
$242
$68
$84
Portfolio
Proceeds
2008
2009
2010
$4.00
3.00
2.00
1.00
0
20%
15%
10%
5%
0
F I N A N C I A L H I G H L I G H T S
S T R E N G T H
With a wholly-owned fleet of nearly 132,000 railcars, GATX is a leader in
railcar leasing in both North America and Europe. The Company controls
one of the largest privately owned railcar fleets in the world. In North
America, GATX owns and operates an extensive network of maintenance
shops and mobile repair units, and benefits from strong relationships
with third-party maintenance providers.
GATX also has a substantial presence in the marine market. American
Steamship Company (“ASC”) operates 18 vessels—the largest fleet of U.S.-
flagged vessels on the Great Lakes. Within Specialty, GATX also owns
almost 500 tugs and barges serving the U.S. inland marine market,
and through joint-venture investments, it holds an interest in 30
ocean-going vessels.
Contributing to GATX’s strength is a 50 percent ownership of
Rolls-Royce and Partners Finance, one of the largest lessors of spare
aircraft engines worldwide.
GATX employees reflect the Company’s rich history: dedicated,
experienced, service-oriented and extremely knowledgeable. They add
great value to GATX’s asset base by consistently providing first-rate
services—including maintenance, engineering, training and asset
management—to the Company’s 900-plus customers.
P E R F O R M A N C E
Asset Mix
$6.4 Billion
Net Book Value
Including on and off
balance sheet assets
Worldwide
Wholly-Owned Fleet
132,000 Railcars
82%
Rail
12%
Specialty
4%
ASC
2%
Other
as of 12/31/10
60%
Tank Cars
24%
Covered Hoppers
11%
Open Hoppers &
Gondolas
5%
Other
as of 12/31/10
RAIL
While managing through slowly
improving conditions last year, Rail
invested $475 million to strengthen its
asset base. Although lease pricing was
pressured throughout 2010, utilization
was solid, ending the year at 97 percent
in North America and 96 percent in
Europe. Additionally, as asset and
credit markets improved, so did asset
remarketing income and scrapping gains.
North American Fleet Utilization
Owned Railcars
99%
98%
98%
96%
97%
2006
2007
2008
2009
2010
O P P O R T U N I T I E S
Before the recent recession, GATX readied itself to take advantage
of opportunities that a downturn would present. The Company
capitalized on several opportunities to add attractively-priced assets
to its portfolio. In 2008, Rail bought the 3,650 railcar fleet of Allco
Finance Group Limited. And last year, through two notable transactions,
Rail acquired an interest in nearly 8,000 railcars. Since the start of the
economic crisis, GATX has invested more than $1 billion and added
approximately 18,000 railcars to its owned and managed fleet,
bolstering its already strong market position.
In addition, Rail established a presence in India in December 2010,
positioning the Company to be an early participant in that country’s
emerging railcar-leasing market. GATX has the market position,
asset knowledge, financial flexibility and desire to pursue more
growth opportunities.
Specialty Owned
Portfolio of Assets
$744 Million
Net Book Value
ASC Commodities
Carried
28 Million Net Tons
24%
Marine
21%
Aircraft Engine
Leasing
Joint Ventures
19%
Marine Joint
Ventures
14%
Industrial/Energy
6%
Energy Joint
Venture
16%
Other
as of 12/31/10
52%
Iron Ore
37%
Coal
9%
Limestone
Aggregates
2%
Other
2010
SPECIALTY
ASC
Specialty invested $97 million in 2010,
capitalizing on opportunities to grow
its asset base of industrial and marine
assets. While continued pressure on
marine charter rates led to a decline
in income from blue-water joint
ventures, these investments remain
well positioned for a long-term recovery.
Also, Rolls-Royce and Partners Finance
posted strong results, and this venture
continues to see growth opportunities
in the commercial spare aircraft engine
leasing business.
Worldwide Wholly-Owned Fleet
Number of Railcars
Due to its significant position on
the Great Lakes, ASC is able to
flex its fleet size to meet changing
demand. During the 2010 sailing
season, ASC operated 13 of its 18
vessels while achieving sharply
higher segment profit versus
2009. Steel mill capacity utilization
and production increased from
the historic low levels of 2009,
and ASC’s tonnage volumes rose
accordingly.
128,949
131,880
132,700
130,903
131,821
110,478
18,471
112,445
19,435
112,976
19,724
110,870
20,033
111,389
20,432
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
2006
2007
2008
2009
2010
North America
Europe
L E T T E R F R O M T H E C H A I R M A N
GATX operates in the highly cyclical markets of rail, marine and
industrial equipment. This cyclicality cannot be avoided,
so we strive to manage our business effectively in the
current climate while simultaneously preparing for the
next phase in the business cycle. Although this strategy may not always maximize earnings
in the short term, we define success as reducing long-term earnings volatility while ensuring
that our financial achievement is progressively higher at the peak of each successive business
cycle. I will explain what we have done in the recent economic downturn to position the
Company to generate maximum long-term value for our shareholders.
The downturn started in GATX’s underlying markets in 2008. Since that time, we have
focused on three tactics to protect current earnings while preparing for the eventual upturn
in the global economy.
First, we worked to significantly reduce costs in the short term while making certain
we were not cutting any resources that would impact our ability to serve our customers
or limit our growth. A measure of our success in this area is that GATX’s SG&A costs were
reduced by almost 25 percent from the peak of the market, enhancing current earnings
while preserving our ability to grow.
Second, we priced leases aggressively as the market turned down, sometimes sacrificing
lease rates in order to keep our assets highly utilized. An example of our success is the fact
that GATX’s North American rail fleet maintained at least 95.9 percent utilization during
this entire period. At the same time, we worked to reduce lease renewal terms dramatically.
We were successful here as well, with our average North American rail lease term dropping
from 70 months at the peak of the market in 2007 to 31 months in early 2010. This will allow
us to renew a disproportionate share of our fleet in a strengthening rail market as the
economic recovery continues in 2011 and beyond.
Lastly, we pushed hard to grow our asset base at the greatly reduced prices available at
the bottom of the business cycle. From late 2008 through 2010, we invested over $1 billion
and were able to add over 18,000 cars to our owned and managed fleet. Notably, much
of this growth was generated by purchasing railcar fleets of financially distressed lessors.
These fleet acquisitions were completed at advantaged prices and at a time when few other
industry players were investing in the rail market. The shareholder value added by these
transactions should become clear in the coming years.
Turning to our recent financial performance, in 2010 we saw the global rail market begin
its recovery while most blue-water marine markets continued to experience weak demand
and an oversupply of vessels. The tonnage carried on the Great Lakes recovered nicely
due to higher iron ore volumes required by the U.S. steel mills. Importantly, we performed
financially as we expected entering 2010. While our earnings and returns reflected the
tough economic environment, we are even more confident in our long-term position.
Revenue pressure will start to subside in 2011 as the global economy and our underlying
markets continue to recover. We expect earnings to be up modestly as this recovery takes
hold and the capital markets remain at attractive levels. In Rail, we will change our focus
from preserving utilization to increasing lease rates. We will continue to grow our asset base
in North America and Europe through both new railcar purchases and secondary market
activity. We also intend to expand our rail presence in select emerging markets, where we
can take our expertise and apply it to markets with more attractive growth characteristics.
GATX’s stock has outperformed the S&P 500 for the last one-, three-, five- and seven-year
periods. With our recently announced dividend increase, GATX has now paid a dividend for
92 consecutive years, a long-term record few companies can match. It is an honor to lead a
company with such a long history of performing for its shareholders. Coupled with a strategy
that is long-term focused, we plan on continuing this tradition.
Brian A. Kenney, Chairman, President and CEO of GATX Corporation
Brian A. Kenney
Chairman, President and
Chief Executive Officer
Robert C. Lyons
Senior Vice President and
Chief Financial Officer
James F. Earl
Executive Vice President
and Chief Operating Officer
Deborah A. Golden
Senior Vice President,
General Counsel and Secretary
Michael T. Brooks
Senior Vice President and
Chief Information Officer
William J. Hasek
Senior Vice President
and Treasurer
Curt F. Glenn
Senior Vice President,
Portfolio Management
Mary K. Lawler
Senior Vice President,
Human Resources
William M. Muckian
Senior Vice President,
Controller and
Chief Accounting Officer
Clifford J. Porzenheim
Senior Vice President,
Strategic Growth
Officers
Anne L. Arvia (1,3)
President, Nationwide Retirement Plans
Richard Fairbanks (3)
Chairman, Layalina Productions, Inc.
Deborah M. Fretz (2,3)
Retired; Former President and Chief Executive Officer,
Sunoco Logistics Partners, L.P.
Ernst A. Häberli (1)
Retired; Former President,
Commercial Operations International,
The Gillette Company
Mark G. McGrath (2,3)
Retired; Former Director,
McKinsey & Company
James B. Ream (1,2)
Senior Vice President, Maintenance
and Engineering, American Airlines
David S. Sutherland (1,2)
Retired; Former President and
Chief Executive Officer, IPSCO Inc.
Casey J. Sylla (A)
Retired; Former Chairman
and Chief Executive Officer,
Allstate Life Insurance Company
Brian A. Kenney
Chairman, President and
Chief Executive Officer, GATX Corporation
Board of Directors
(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.
C O R P O R A T E I N F O R M A T I O N
S H A R E H O L D E R I N Q U I R I E S
Inquiries regarding dividend checks, the dividend re-investment
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:
BNY Mellon Shareowner Services
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: http://www.bnymellon.com/shareowner/isd
I N F O R M AT I O N R E L AT I N G TO S H A R E H O L D E R O W N E R S H I P,
D I V I D E N D PAYM E N T S O R S H A R E T R A N S F E R S
Lisa M. Ibarra, Assistant Secretary
Telephone: (312) 621-6603
Fax: (312) 621-6647
E-mail: lisa.ibarra@gatx.com
F I N A N C I A L I N F O R M AT I O N A N D P R E S S R E L E A S E S
A copy of the Company’s Annual Report on Form 10-K for 2010 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. GATX
Corporation welcomes and encourages questions and comments from
its shareholders, potential investors, financial professionals and the
public at large. To better serve interested parties, the following GATX
personnel may be contacted by letter, telephone, e-mail and/or fax.
TO R E Q U E S T P U B L I S H E D F I N A N C I A L I N F O R M AT I O N
A N D F I N A N C I A L R E P O R T S
GATX Corporation
Investor Relations Department
222 West Adams Street
Chicago, Illinois 60606-5314
Telephone: (800) 428-8161
Fax: (312) 621-6648
E-mail: ir@gatx.com
R E Q U E S T L I N E F O R M AT E R I A L S
(312) 621-6300
A N A LYS T S , I N S T I T U T I O N A L S H A R E H O L D E R S A N D
F I N A N C I A L CO M M U N I T Y I N Q U I R I E S
Jennifer Van Aken, Director, Investor Relations
Telephone: (312) 621-6689
Fax: (312) 621-6648
E-mail: jennifer.vanaken@gatx.com
I N D I V I D UA L I N V E S TO R S’ I N Q U I R I E S
Irma Dominguez, Investor Relations Coordinator
Telephone: (312) 621-8799
Fax: (312) 621-6648
E-mail: irma.dominguez@gatx.com
Q U E S T I O N S R E G A R D I N G S A L E S , S E R V I C E ,
L E A S E I N F O R M AT I O N O R C U S TO M E R S O LU T I O N S
Rail: (312) 621-6200
Specialty: (415) 955-3200
American Steamship Company: (716) 635-0222
I N D E P E N D E N T R E G I S T E R E D P U B L I C ACCO U N T I N G F I R M
Ernst & Young LLP
Forward-Looking Statements
This document contains statements that may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934 and are subject to the safe harbor provisions of those sections and the Private Securities
Litigation Reform Act of 1995. Some of these statements may be identified by words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “predict,”
“project” or other words and terms of similar meaning. Investors are cautioned that any such forward-looking statements are not guarantees of future
performance and involve risks and uncertainties, including those described in GATX’s Annual Report on Form 10-K for the year ended December 31, 2010
and other filings with the SEC, and that actual results or developments may differ materially from those in the forward-looking statements. Specific
factors that might cause actual results to differ from expectations include, but are not limited to, general economic, market, regulatory and political
conditions in the rail, marine, industrial and other industries served by GATX and its customers; lease rates, utilization levels and operating costs in
GATX’s primary operating segments; conditions in the capital markets; changes in GATX’s credit ratings and financing costs; regulatory rulings that may
impact the economic value and operating costs of assets; costs associated with maintenance initiatives; 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 portfolio management decisions implemented by GATX; the opportunity for remarketing income; and the outcome
of pending or threatened litigation. Given these risks and uncertainties, readers are cautioned not to place undue reliance on these forward-looking
statements, which reflect management’s analysis, judgment, belief or expectation only as of the date hereof. GATX has based these forward-looking
statements on information currently available and disclaims any intention or obligation to update or revise these forward-looking statements to reflect
subsequent events or circumstances.
Annual Meeting
Friday, April 22, 2011
9:00 a.m. Central Time
Northern Trust Company
Assembly Room, Sixth Floor
50 South LaSalle Street
Chicago, Illinois 60675
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GATX CORPORATION
222 West Adams Street
Chicago, IL 60606-5314
312-621-6200
800-428-8161
NYSE:GMT
2 0 1 0 A N N U A L R E P O R T
F I N A N C I A L H I G H L I G H T S
G A T X C O R P O R A T I O N ( N Y S E : G M T )
provides leasing 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, Illinois since its founding in 1898 and has traded
on the New York Stock Exchange since 1916.
in millions, except per share data
Gross income
Net income
Per diluted share net income
excluding tax benefits and other items(a)
2008
2009
2010
$ 1,443.1
194.8
3.88
$
$ 1,153.9
81.4
1.70
$
$ 1,204.9
80.8
1.72
$
Net income
Per diluted share net income
$
$
174.9
3.49
$
$
94.7
1.97
$
$
74.6
1.59
(a) The items for each year noted are referred to as “Tax Benefits and Other Items.”
- Results for 2010 included the favorable resolution of a litigation matter, certain tax benefits and negative fair-value
adjustments of certain interest rate swaps at GATX’s European rail affiliate, AAE Cargo AG (“AAE”).
- Results for 2009 included negative fair-value adjustments on the AAE interest rate swaps and realized foreign tax credits.
- Results for 2008 included a benefit from the reversal of tax reserves, a gain on the sale of an office building, the reversal
of environmental reserves and negative fair-value adjustments on the AAE interest rate swaps.
Income per Diluted Share
Investment Volume
Excluding tax benefits and other items(a)
Millions
$3.49
$1.97
$1.59
2008
2009
2010
Return on Equity
$800
600
400
200
0
$781
$480
$585
2008
2009
2010
Cash from Operations
and Portfolio Proceeds
Excluding tax benefits and other items(a)
Millions
15%
9%
7%
2008
2009
2010
$400
300
200
100
0
$364
$156
Cash from
Operations
$265
$242
$68
$84
Portfolio
Proceeds
2008
2009
2010
$4.00
3.00
2.00
1.00
0
20%
15%
10%
5%
0