GATX Corporation (GMT)’s Fourth Quarter 2014 Earnings Conference Call Transcript

Art Hatfield – Raymond James

Okay. And then, one last thing and this is kind of a math question to help me understand something. In the European business, just doing my rough calculation on lease revenue or lease income in the quarter divided by the average utilized cars in service, I was coming up with a lease rate, a monthly lease rate in the quarter that was down about 5%, 6% year-over-year. And one I am wondering if there is something that may occur occasionally in that lease income line that I need to think about or maybe I am getting a right number but it’s a mix issue that occurring in the quarter?

Robert C. Lyons – Executive Vice President and Chief Financial Officer
No, we are really interested in that tax issue, raised our marching up in Europe, but I don’t want to give the impression that it’s a there, it’s a very choppy market and the reason the average rate is moving up in euros is because of the new cars and the scrapping of the older cars.

Brian Kenney – Chairman, President and Chief Executive Officer
Yes, I would just add to that as you know from looking at what transpired with the euro effects rate over the course of the year the real devaluation that took place primarily in the fourth quarter. So, there is a revenue hit that’s taken there that translation. So it affects – you are looking just on a quarterly run rate basis converted the dollars that’s the effect.

Art Hatfield – Raymond James
Can we think about what it would have been — can you tell us — you may not even though this off the top of your head — what the rate increases were ex-the FX issue.

Robert C. Lyons – Executive Vice President and Chief Financial Officer
In terms of lease rate

Art Hatfield – Raymond James

Yes

Robert C. Lyons – Executive Vice President and Chief Financial Officer

I mean that is much more of a low single digit type lease rate environment in terms of percentage increase.