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

Kristine Kubacki – Avondale Partners
Okay, that’s helpful. And then did you give us some thoughts on remarketing income for ’15?

Robert C. Lyons – Executive Vice President and Chief Financial Officer
We indicated it should be in the same general range as what it was in 2014 with North America Rail again being the big driver of it.

Kristine Kubacki – Avondale Partners
Any cadence quarter-to-quarter we should think about?

Robert C. Lyons – Executive Vice President and Chief Financial Officer
Nothing significant right now that I would highlight. We do have some packages in the market. So those likely occur in first and second quarter. But then we’ll reassess and see what’s available in the back half of the year too.

Kristine Kubacki – Avondale Partners
Just some questions on the maintenance. I know you talked a little bit about it for 2015. But could you talk — will maintenance expense be pretty level through 2015 or should we think about any seasonality with that? And then, can you give us, remind us just how that will start to ebb in 2016.

Brian Kenney – Chairman, President and Chief Executive Officer
Sure. So as a very late start to the selling season for everyone, we were able to bring on another vessel that enabled us to fulfill our contractual commitments for the year. Not everybody else was able to do that therefore some spot cargos became available and we’re able to pick those up and those were pretty profitable. If you assume a normal start to the selling season and it’s going to knock on some when I said that then it would be a more normal year and everybody should be able to fulfill their commitments and those spot cargos may not become available. But once again depends on the weather.

Kristine Kubacki – Avondale Partners

Okay thank you very much for your time.

Operator

And next we’ll move on to Matt BroMatt Brooklier with Longbow Research.

Matt Brooklier – Longbow Research

Hey thanks, good morning everyone. Good color on the potential impact from crude oil prices dropping here. I just have one additional question. Of the 3,100 and this is a little bit nitpicky, but I will ask it anyways. Of the 3,100 cars that you have, covered hoppers in fracq sand, what percentage of those cars are up for renewal this year? Is it about in line with the average for your total fleet or does that number differ a little bit? Thanks.

Jennifer Van Aken – Director

Matt, actually if you look at the renewals for small cube covered hoppers particularly in fracq sand this, it’s actually a pretty small percentage, so relatively smaller than the composition of the rest of our fleet.

Matt Brooklier – Longbow Research

Okay, so a lower number.