GATX Corporation Announces Quarterly Dividend Increase and $300 Million Stock Repurchase Program
The board of directors of GATX Corporation (NYSE:GMT) today declared a
quarterly dividend of $0.40 per common share, payable March 31, 2016, to
shareholders of record on February 26, 2016. GATX has paid quarterly
dividends without interruption since 1919, and the dividend amount
announced today represents a 5.3% increase from the prior year’s
dividend. Additionally, the board has approved a $300 million share
repurchase authorization.
Brian A. Kenney, president and chief executive officer of GATX
Corporation said, “In the last ten years, we have invested more than
$7.0 billion in our business and returned over $1.3 billion to our
shareholders through dividends and share repurchase, all while
maintaining a strong financial position. We have also used the strong
rail market of the last few years to extend lease terms at attractive
rates, thus securing a record amount of committed future revenue. This
dividend increase and share repurchase authorization reflect the board’s
positive long-term outlook for the Company and demonstrates GATX’s
commitment to continue returning capital to our shareholders.”
COMPANY DESCRIPTION
GATX Corporation (NYSE:GMT) strives to be recognized as the finest
railcar leasing company in the world by its customers, its shareholders,
its employees and the communities where it operates. As the largest
global railcar lessor, GATX has been providing quality railcars and
services to its customers for more than 117 years. GATX has been
headquartered in Chicago, Illinois, since its founding in 1898. For more
information, please visit the Company's website at www.gatx.com.
FORWARD-LOOKING STATEMENTS
Forward-looking statements in this press release that are not historical
facts are “forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. These include statements that
reflect our current views with respect to, among other things, future
events, financial performance and market conditions. 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,” “continue,” “likely,”
“will,” “would,” and variations of these terms and similar expressions,
or the negative of these terms or similar expressions. Specific risks
and uncertainties include, but are not limited to, (1) the impact of new
regulatory requirements for tank cars carrying crude, ethanol, and other
flammable liquids; (2) inability to maintain our assets on lease at
satisfactory rates; (3) weak economic conditions, financial market
volatility, and other factors that may decrease demand for our assets
and services; (4) decreased demand for railcars due to sustained low
crude oil prices; (5) reduced opportunities to generate asset
remarketing income; (6) changes to, or failure to comply with, laws,
rules, and regulations applicable to our assets and operations; (7)
operational disruption and increased costs associated with compliance
maintenance programs and other maintenance initiatives; (8) financial
and operational risks associated with long-term railcar purchase
commitments; (9) deterioration of conditions in the capital markets,
reductions in our credit ratings, or increases in our financing costs;
(10) events having an adverse impact on assets, customers, or regions
where we have a large investment; (11) operational and financial risks
related to our affiliate investments, including the RRPF affiliates;
(12) risks related to international operations and expansion into new
geographic markets; (13) fluctuations in foreign exchange rates; (14)
exposure to damages, fines, and civil and criminal penalties arising
from a negative outcome in our pending or threatened litigation; (15)
inadequate allowances to cover credit losses in our portfolio; (16)
asset impairment charges we may be required to recognize; (17)
competitive factors in our primary markets; (18) environmental
remediation costs; (19) inability to obtain cost-effective insurance;
(20) failure to successfully negotiate collective bargaining agreements
with the unions representing a substantial portion of our employees; and
(21) other risks discussed in our filings with the U.S. Securities and
Exchange Commission (“SEC”), including our Form 10-K for the year ended
December 31, 2014, and our subsequently filed Form 10-Q reports, all of
which are available on the SEC’s website (www.sec.gov).
Investors 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. The Company undertakes no obligation to publicly
update or revise these forward-looking statements.
Investor, corporate, financial, historical financial, photographic
and news release information may be found at www.gatx.com.
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