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GATX (GATX)

Participants
Brian Kenney President and Chief Executive Officer
Robert Lyons Executive Vice President and President, Rail North America
Shari Hellerman Director, Investor Relations
Thomas Ellman Executive Vice President and Chief Financial Officer
Justin Long Stephens Inc
Bascome Majors Susquehanna
Matt Elkott Cowen and Company
Allison Poliniak Wells Fargo
Marla Backer Sidoti
Justin Bergner Gabelli Funds
Call transcript
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Operator

Good day, ladies, and gentlemen, and welcome to the GATX 2022 First Quarter Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Shari Hellerman, Director of Investor Relations. Please go ahead.

Shari Hellerman

Thank you, Kit (ph). everyone. morning, Good for you XXXX quarter first And joining call. earnings thank GATX's Vice President by CFO, Tom Executive of today joined and North and and America. Rail Brian Lyons, and I'm President Kenney, CEO, President Vice Ellman, Bob President Executive morning our by of remarks our an begin Bob. and results, We with by quarter followed overview this call prepared Brian first we'll the Afterwards, open call up for questions.

today could Actual note that statements you'll materially our discussion information results those some hear statements. forward-looking trends the please will of begin, or of we differ Before from or consists during forecasts.

first Finance per are share, Austria. the items diluted $X.XX in to spare included These represents of revise earnings to impact subsequent net on of information, an reduction income the please Form risk GATX more share negative in quarter compares Also our release. quarter charge statements to the or For of was share any our $XX.X in income per XXXX, related GATX's per impairment events assumes in first-quarter net or earnings a or Today, tax net for $XX.X positive million engines This affiliates Those a refer diluted Partners our diluted forward-looking per GATX's the or share. associated Page share. in or quarter GATX XXXX a $X of factors Russia. net of enacted XX with circumstances. filings of first obligation rate SEC. detailed net with XXXX Rolls-Royce which in reported or million discussed & million included $X.XX diluted million other $X.XX results at XXXX, to to and include release. $XX.X no a $X.XX impact aircraft reflect XX-K update

across Our rate high results for our fleet North Rail strong XX.X% America, first cars at global success was utilization rail XX%. remained reflect businesses. our rail and At demand quarter renewal

GATX rates. lease an in renewal rate lease index of quarters average X.X% Furthermore, seven quarter. price lease of seen months. of absolute now of sequential increases consecutive have positive accelerated change XX the was We The increases term this pace renewal rate with

successfully cars place a committed our base. diverse with new to continue customer We from supply rail agreements

our XXXX agreement. nearly rail placed supply cars for have XXXX Trinity We

have X,XXX XXXX supply agreements. railcars all placed we Additionally, virtually our Greenbrier from

Our earliest Trinity available supply is XXXX. our first scheduled in quarter agreement delivery the under essentially of

with very of leases. The vast strong. Rail the million remarketing XXXX. to remarketing remains XX% Rail versus utilization was America expected well and for our secondary majority above income for lease market fleet approximately the increases and or North the railcar activity quarter. high This of during rates expiring continues $XX.X performed International represents renewal experience

Management, first-quarter line with Portfolio to Turning was in expectations. performance

operate Our travel. passenger to Rolls-Royce Partners very for a and continue in environment air Finance global uncertain and challenging affiliates

with in the investment million, $XXX total Finally, quarter volume focus GATX with on assets first a our railcar over globally.

would Before April in microphone I like Central held meeting the like over to meeting will to call With Brian. format. remind is at over on XXnd, It I Brian, Time. to shareholders to be virtual-only X:XX now am, our that Friday, a scheduled turn that, annual I'd the everyone turn

Brian Kenney

Thanks, Shari.

meeting. As GATX our after of last Shari And retirement a days. I announced XXXX know, And years. lot that's that's effective my as said, the annual XX of two in December CEO at shareholders as

and to of want the over Tezel, want it's in all with industry, Paul in last fun to and and Nero, years. leadership Gokce to and the XXst my this been makes by best Kim Ellman, earnings equally GATX to And they're Tom last worked have more and extraordinary though at you say tell even head hope GATX, shareholders do They over as led I XX say challenging together employees and work team ready for GATX And Golden, interesting than the the are it's of XX was without that of over in the honestly, can communications years honest that been and years, feel call. and and and an senior this Bob Bob new I So I my Deb of GATX and transparent CEO the more a I I Titterton. been job. with team you pleasure the strong you. team, as of I doubt he's do for analysts It's Lyons. a work with

So, it the over to CEO. without further hand me delay, let incoming, Bob?

Robert Lyons

we plus past remiss years. XX if to leadership Thank take you, for if years a be Brian. I'd thank And didn't and GATX for I his XX and for morning, moment -- his Brian the Good everyone. during service

strategic in Brian and I think noted, many a he clear and he at those to high all centered at during disciplined direct XXst earnings led were carry GATX. time, call we're here appreciate took way There that, carried us is heart, answers, company honesty to vision eager forward. deployment. final of them with That Brian. a conference that who very you, for As many his this And this and you the and over capital bar set direct lessons it. know GATX, around Thank of

that a to it'd a than as Ukraine they you those each get businesses. various try questions During give on I having helpful of address number summary Q&A, be our war upfront. of one regarding is impact to today's the we'll on came, rather And likely the thought

impacted prayers war. who've I to with and by do of the bear -- To all of out thoughts that. all So, start, our while -- people those me the millions of go been the

As so, our turmoil pretty of the employees stand is our who lessor commitments; in foremost, with directly steel businesses, first thought are having elevated. higher try the car financial installed assistance the a in spin -- America, taken GATX. some Warsaw. is and assist in base facility based number an Logically, new humanitarian Many from cases impact prices rising We our prices. turning this terrible businesses crisis. way we is and a navigate of Poland and simple. same. the we and result at war affected lease our families. work a we GATX are has. this of safety and of the process who all With positive in constituents. our crisis. certain are of remained steel incredibly to continue XXX can. by and of first it providing have impact commitment is on encourage the we'll know, its North proud in to Ukraine way we have business In not and out before employee our employees employees our assist to have costs large To have think business, this help those where consider plus volunteering who and This operation. of is our and employees This on doing our the the definitely in they to rates scrap during vary, cases in in The are with certainly need. costs well impacts we'll our leading but are all and in number years a should turmoil, but of on crises approach with those started same constructively our railcars displaced of on their of well-being those those on of the We by and each we'll you put railcar in large to influx we the Ostróda, Europe, are a and a to railcar have Rail Personally, refugee the war employee I'm Many each

costumer prices ultimate seeing attractive bit opportunities. returns holding and car orders. some supply car a rates does investments shareholders. to is so are on adding type. lease return continues higher focused However, cars results Elevated going our new equation disciplined, driver new and generate challenging. costs an the spot market attractive where opportunities we of will assets to cases, off be in making significantly That is we're the the investment across willing at new of to balance or volume a railcars. imbalance new Also, so generating lease demand at in in risk-adjusted car spot That more not vary said, can are reduction This add in on we more are they for but rates, it challenging, remain at some attractive improve, between

We have steel certain stainless seen lower delays inventories a as dramatic railcar increase of and a that those prices. some components, are of in nickel result particularly

minimal and managing part, we're safety with delays through For the disruption. stock we've most built

number issues small million fleet. Will with on challenging three rate very particular to the Europe, chain of expected customers regards India having leasing will car India to to GATX the we in are XXX Russia. volume receiving situation renewals. case, those profit Rail from higher delivery customers, the So, are steel any capitalize been material discuss. having in the market Again, lock of move And Lease India in prices, we're without the rising a the ensure standpoint, costs material to components. will with and $XX continues but transactions. very on cars, of costs the solid total and new expected we and a three from the investment situation to on and costs, constructively supply a on standpoint, anticipate to But delay and with railcar American new that's continue chain attempting closely schedule. business impacts working in continue and the our while do and situation. crisis grow to time, has North we're At and to new directly issues. are XXXX supply there profit challenge, strong. railcar are this year. lease a impact employees, are We a And have At Demand gouging, not Internationally, customers this that there team fair same results supply rates see diversify address in to in Europe and a on ensure we exists delivery, is acute impact builders chain rates more customers operationally, car wagon not issues investment. In not our in segment a businesses. topics confident and segment wagons approximately some not in price are working any I'm for any suppliers new be that

Our main paying for on with to be countersanctions to consider that We business of complying course always appropriate we are employees. accordingly. business in extent sanctions now, been the action that Clearly, fullest from employees not made that's of our possible, investment the concern the this that run ensure We're But the event our doing has the all can can We'll will we're the well-being their and in and the improved. option operating, years here. Russia investment for environment ago leases. and value is happening. and customers

put Omicron RRPF, war Lastly, the to international heels Ukraine, at travel. in has of significant air on pressure the and continued

the on The is very noted -- impacts directly travel had down global three has always that travel, Russia What RRPF As the demand press of engines likelihood unknown in for recovery air time. demand lease is we therefore in RRPF we release, do of recovered the for this from wrote because our engines air value and recovery at on low. shocks. know international longer-term is that

trajectory go positive the confident air to it With a let's positive of fact, longer-term to the In Omicron before and return trend on that, that challenges a line. dual will more Q&A. travel We're war. was

Operator

press gentlemen, and by first off the turned one a telephone allow like your please go you mute to equipment. question, function Again, if is take speakerphone, to your moment using assemble your question pressing sure we'll from may Long Ladies ask please a you. We'll to if a Thank one with signal you're to pause please ahead. signal our star on keypad star make you'd question, Justin ask to a reach our Stevens, queue.

Justin Long

with your by Thanks, outlook. and EPS support some XXXX range guidance great good Last underlying assumptions are it's tracking year would those businesses? the the didn't segment you. the far line moved again, morning. this you congrats were line know quarter, in I materially, Brian or specific there been all item And that aligned so provided working you trends -- different change, across that but of relatively any say

Thomas Ellman

Justin, Tom. Hey this is

For of for in first much segments. our everything the was expectations with the very line each quarter,

India, in Rail We strengthening continued indeed, that. strong, market. expected Europe continuing they've the And and in see to seen have North to been we've a be Similarly, markets so. American and both those

then global We recovery how so Ukraine to challenges you with lot continue impact continues. have uncertainty the conflict of travel. as a travel, air JV the Russia from will face global pandemic of the Rolls-Royce And predicting on the which dependent air the v is additional

However, was line with first in for expectations. quarter, our also the that

by no changed expectations, you as full-year So, why four-year segment, is go change for there that really which guidance. to our nothing segment materially is we've made

Justin Long

outlook to first a in around quarter the this or remarketing level what helpful purely and as an elevated softer does we the of secondary and saw? the rest of sell the remarketing in think That's level any in And market is implied reflect for quarter North Okay. way available clarify. timing in demand you the you the drop-off over function about had to first of demand American in of that the the year,

Robert Lyons

Rob. it's Justin,

in thought as we we to the that secondary of continue coming to the half we that the year quarter. had of the market. see the of the And the on the schedule would due majority into of first remarketing reflected in we balance solely Um, The market and and year, income first what year. indicated the incredibly through available occur the remains expect to strong was

So underlying assets. sales ample an see number packages we of demand smaller continuing the the marketplace, even very we're a the have good to for and in buyers, on

So is year. continue our assuming -- market no the expectation that there's balance will the capital through continue will disruption, of that

Justin Long

improvement a guess an I way a Is in one, referenced sequential that? could there last quantify lease and And rates Okay. you acceleration you've quick absolute there.

Robert Lyons

Sure.

terms we of a in in rate single-digit you QX increase. high in Justin, think versus total lease recall I range basis, XXXX quarter, sequential last the QX on were

This quarter, freight seeing mid-to-high the the it's highest car of business demand. teens in the with side the

teens, of carriers, XXXX. to on So, on freight higher mid-to-high a QX than tank. little lower bit bit a little in QX that But the

upward So good trend. very

Justin Long

Great at time. the to hear. I'll leave that. it I appreciate

Operator

next We'll Bascome Susquehanna, question from go with Majors ahead. take our please

Bascome Majors

my taking questions. for thanks Yeah,

that that the are would line you in types -- Just about versus in to just follow-up Can about spoken of that piece. term way long you talk the some if last past, on car you've helpful. reflecting trend any in way, major be on where Thanks. your the is

Brian Kenney

service Sure. we varies determine be general; seeing freight many car target car quarters. Tanks, we've of have particularly there Well, some few equilibrium the rate. deed cases, the still In and long-term to those specific The over XXX cars. view would we'll in best best or the rates below biggest term, dynamics, seeing types. seen power we above. with we're definitely is do where that. rates fleet continue course the of in over Even general of types, our uptick the the for across that demand last we're in and though to would the long more tank the the really and I what different we categories can say

there. So, opportunities out there are investment

it we volume in very sure very quarter, will first For had targeted. significant investment but the be

Bascome Majors

landscape have your is opportunities to back talk that. oil, crude for about in involved which products and Europe, and Thank variety change maybe is XX% customers, potential a Europe, the recall risks fleet create shifting mineral if that there? in in energy And that refined given of in half deployed you does for where I long-term in to When capital the LPG. you you of

Brian Kenney

Bob talked a Brian, hard types. an two even the seeing neutral our oil identify tremendous Ukraine, shift and demand strong probably last and can in been for there are those mineral few on as two in of We've the to we've the part could petrochemical to his the additional side lot from has years. even and alluded that to by and a seen tremendous over big It's you that. be and Europe, a it. LPG, quantify last demand. made with continuing side we're the favoring a and to so so carbon if as war And point there's that's in last opportunities the trying do fleets, being again, in it's of as years whole the XXXX car freight -- market where demand, reasons since But over movement out years I there number It's green anywhere we've more invest far on take them for is over last on careful as you opening, demand. much fleet. respond And the on you two which to how that having that, years. the It's impact demand And you'd about how to

customers. your help best So, you

You on tragic avoid a capitalize situation. short-term opportunities to and trying

what changing. say put -- sustainable may flows in Europe. you to time that be think trying how in real the these term those And right where do XX-year how to be assessment trade and may them. I'd now really, are that's and of long very is So is have flow is And assets you we're remember, changes happening assess

the So, just this Europe might is. it I we're in you're would be say, seeing how changes with right now, going assessing sustainable and where

Bascome Majors

you Thank early situation. a complex comment that for on

deployment you Just you've last being year? its being maybe stock valuation buyback. investment talked selective about Can dry of I like end on stock long-term investment balance maybe invest fruitful be powder the equipment into Thanks higher capital for assets. own the in I more to your an in at mean, in. may environment also your opportunistic for own historic that and investment how mean, that assets is about real just one versus in you saving a versus a talk on

Brian Kenney

the the remaining some the still on of million it. Great. authorization of Bascome, have our We quarter. just from of Board around end put some $XXX numbers as

any capital. priced calls framework attractive capital maintaining ensuring the investment-grade shareholders. solid allocation return while us access investment capital to a Our And and opportunities then prioritize attractively to excess for we to rating

complete million dividend via of the More we'll an option during the our to discussions about did each So, quarter. challenging significant of if $X we've opportunities it with stock stock appropriate that risk-adjusted stock quarter. remains an have more via provide becomes more we and consistently buyback. repurchase and always repurchase recently Board We as done investment return, those that do identify to continue Directors

Operator

next We'll question our Please take from Thank you. with Elkott Matt Cowen. go ahead.

Matt Elkott

strong your you. how especially morning. forward market lease with GATX risking I long tap the or being you've that role, capacity. on the revenues which new -- Brian, the hoping working similar And, very perfect elevated. having taken And, core at of you challenged in would congratulations into secondary between the level, the secondary and talk Bob, if guys without maintain railcars, accomplishments a have retirement. about advantage revenue in congratulations Good also new you guess looking again to upcoming you on and have you a had the was I lease Thank market are manufactured to you would term, newly as to would very balance

expect just in activity those the and So make the how your if subside you wondering of back could the year based to we half decisions, on significantly guidance?

Robert Lyons

potentially To the Sure portfolio always with any and in overall what sell Matt, optimization. year it's Bob. from to look portfolio going of the standpoint we're begin given we at

various what in reasons at They're customers. target very versus look we But how quality 's of construct quality and overall are the particular to holding market value on there secondary the maybe those So, they assets the cars fit GATX portfolio. in value lease usually the of for sale. all we

whether quarter as a return assets value? what in probably and we of at we there's how you it time best looking look -- hold some, there's for the value willing how over by at regard. continue a -- those [Indiscernible] release to over commercial long shareholder the given to here anything and We're release market in terms it's our it's we them target them which mathematical that particular is GATX what's element how we that own value won't thank and own a pay surprise to exceeds or term, hold assets no price aspect. view then the as to there's So, or the So of

and a Our making sales maybe. for looking force candidates on best also the is what the involved portfolio and determination sale at

going on won't So on secondary based in change market. process what's the that

Matt Elkott

EPS your guidance your first transaction it. And think been Got remarketing the But how given and upside to income? quarter, the strong market there's secondary know original guidance for I unchanged. you got the do has in big you

Shari Hellerman

fundamentals long as Well, been probably of as time two guidance first land instances or of better in the read I go and maybe a the and Brian XX the think as back get to where through have quarter. like lay well. GATX course typically this the one I've year. And doing if last much We rare there's Tom the of over sense half first years, a we look the I for the the

quarter. posted do trends quarter go we we'll we But through the here So, the very encouraged performance by second I'm the seen as first today. that in and assessment we've the

Matt Elkott

it. I low mean, in basis Got risen been you on era, a average question terms stubbornly bit Can lease much. you very in despite more crude-by-rail not a nowhere months know that a that That's then I average little phase. percentage spot rates they've talk had the but rose mean, terms. during quick above doubled have about terms helpful. to I but the And why improvement the on the, XX quarterly near quarter, average we're really I

Robert Lyons

this can we What read in get the skewed tell I now wouldn't by I too number stretching average you point, at into term right is term. That targeted will And few very Matt. renewals. are Yes. instances, much a

a that's at successful we get that market point doing can that. that at where We level a bit provided in makes in rates it time types, we've are lease small one skewed sense number number of a and in little to by the are long-term been in now transactions. think lock a But car certain

Matt Elkott

Okay.

expect leases of environment? should improving rate lease take to we advantage current -- increase to the the opportunities to of term opportunities are there So,

Robert Lyons

basis. literally Yes. a on analysis And we do weekly that

last and new makes where three, six we longer we've out spectrum been be it successful we're think doing sense term and of we've car more to on of the where in in go termination the seen types we more making that. really So various and months, over instances should course the

Matt Elkott

was on types us to rail things you exposure I And and last Bob. a coal, down chemicals, Because remind one question, very and just traffic. like stone, your talk guys are whole sand, would is still. rail gravel a as -- of of hoping traffic bit strong. the But different

most far. While stubbornly so weak also are -- other intermodal, including groups are

the what mean outlook rail perspective from traffic current your for you does So, fleet? the of

Brian Kenney

the is Matt, watching know that and this real of key the demand. storage, you to cars along if look as that in idle it intersection continues from And at supply you come down.

So, that's at why terms seeing the in been about lease a you're level, talking of Bob macro rates. has improvement that

go commodity If where you're markets commodity, same the are to excess with some continues The commodities. thing to for going you really some of competitors. energy there's by be our see supply the exception still most

see As fully look But at is drives side And you'll that the the look in cycle commodity commodity, two that's that why rather you supply we're much our have by isolation. side. is historically, what to than utilized. you really demand utilization, just more intersection look of if the at you that than loadings the

Matt Elkott

That makes the half that weakness of is much fairly sense inter-modal and the you I guys, almost correct? and traffic is limited; is which rail is inter-modal, exposure rail your believe

Shari Hellerman

little X,XXX cars. Matt, over we Yes, a have

Matt Elkott

it. Thanks, thanks, Appreciate Got you, Thanks, Brian. Shari. it. Thank Tom. Bob.

Brian Kenney

Thank you.

Operator

Please ahead. We'll Wells go question from with Fargo. take our Poliniak next Allison

Allison Poliniak

velocity know thing, the guys velocity one that as a imbalance thoughts kind and morning, just important, that supply next there? obviously think How we Just certainly as -- is view well. congrats, time again? improves you Should with a that to I of further. being Good see Hey, rail I guys. this just question point? wanted take what phase. at well hopefully as that on little mentioned, being of shifting I volatility any some in your little had last your challenged Brian, over

Robert Lyons

back people Sure, a some to thought the couldn't in this. I likely definitely situation more Allison, that And you've was customers that days. you could some the that volatility back see sure market. velocity the some if times low of customers we're these seeing -- in Historically, marketplace, come railcars, solve of the push think given for might more but seen like would rail for with might in and you fluidity there come alternatives less which looking off actually, and have

Allison Poliniak

helpful. touch then that's I on And just want maintenance. to Great,

you and in been component within so think, had side mentioned, felt forth about terms with hearing manufacturing and lot you it, disruptions there of we've of operations. was I Bob Omicron okay a the the any

there volatility out for catch maintenance on on to smooth terms side? in Are the the you any maybe Just would for that have up year. you that

Brian Kenney

the the and COVID, operations. quarter challenges I maybe little or with anticipated, outages quarter, disrupted few providers. it's think own third-party during came even have that of yes, from network, a more first did with certainly line right X even railroads first the below. our net work maintenance we what had from regards some in in in nothing bit our Class maintenance to overall we a But we're a hearing numbers But perspective, we whether seen see that

XX% So, not majority days, the tank And sure, fact that other able the to work that navigate. been we and issue as it's for much but one are control of over these and cars, in-house do of certainly specialty freight have better our dependent we an vast we've on with any that third-party. over

Allison Poliniak

Great. Thank you. I'll pass on. it

Operator

Backer We'll go Please take our from next ahead. question with Marla Sidoti.

Marla Backer

you. Thank

competitively given age, of fleet and now? in you diversification years. per do you average can size, fleet see remind terms $X positioned it annum see relative How expand us your your what's past to of of after couple you the available the over right to So spending situation, how current billion

Brian Kenney

any investment fleet we This the can't where the been in the lease, two quite or I type decades. North you structure America. high-quality fleet or is alters over across course that over a highly replicate. believe last by a heavily base Well, we It's customer continue -- I on not diversified, best long-term skewed have have and three has felt one fleets one the the not years, how dramatically continue just or to particular spread car fleet. of always the and that's commodity, very one of built about It's think fleet

the the it's we You fleet, we number get that from scale to tend move have we we standpoint, so, in it's gaps feel and new given at to but every of switch adding that going our I today. -- year some over-weighted. you're dramatically. can't market to fleet scale, We average our change -- cars out, are pockets the we're an like dramatically, too diversification fleet. And there's have that hard that flip the nor this to -- to hard see age in and we scrap cars not look no the

So, I in an think fleet our position. outstanding is

Marla Backer

commenting Okay. your you. remarks, instance. patterns some you the when seeing markets, seeing of going you you kind in war widening were as geopolitical a then changing of Poland, obvious on? as what's mentioned regarding Are for specifically radius this result any situation, you change on kind any And prepared persists? of Thank Are

Brian Kenney

can permanent that. are. It's how take and are, sustainable Yes, Brian. know I we don't but just we they

and for gas Russia the So, Belarus especially instance with some things. from on, embargoes war through -- other started that and of imports before

long changing seeing but that last. will don't how we're flows, we So, know

commodities is for now. said, speak and strong very we overall we're I all Europe in cars. I all As as in right our will demand our real-time assessment say

Marla Backer

much. very Thanks Okay.

Operator

next our from take Funds. with Justin Please Gabelli ahead. go Bergner We'll question

Justin Bergner

Brian on congratulations, at to Good and CEO morning the career GATX welcome Bob. great role, a and

Robert Lyons

you. Thank

Justin Bergner

more happen ago. when your to would for just months three have cars the guidance annual to gains you meaningfully My relates remarketing on sell point to than this delivered sale. you first at question trip you What envisioned,

Brian Kenney

it. ratcheted level where market, -- buyer so we into if we Well always up would went think today, at purchasing have were if of has expecting we that there environment here, a materially universe we're saw ratcheted to it been. pretty testing if sense among any They I sell. dramatically the developments It to year the where other up our from cars the it's good the out that from aggressive in But sell. reassess made there portfolio

Justin Bergner

That's great. Okay, helpful.

sort trying speaking additional you about prepared to set spot drivers spot bit could speak dynamics. Secondly, of about color were a Were market commenting to just provide cars on to? provide you the more you the if or get were you in to additional another basis, remarks there. little of mainly inability it the leases a was Maybe

Brian Kenney

Sure, yes. to rate that can cars it's at access get cost related would and lease. supply the car side put and buy the Thank it It's of not price the you. we today's the the sure. much so on to require Jonathan, for lease we car out

And long time, so, a they our customers their in for are fleets They've run efficiently. very sophisticated. quite their businesses been

lease for looking for or okay, And a GATX And demand XX% to off. of prices so, versus we've and are And also such that it they relevant I'll the it's ago, to that a car economical. investment was why make installed base maybe it seen year if XX% high pay make I rate rail have that's at, hold cars. up

those base reasons is high to One alternative installed now. of right buying the the costs -- new. the pretty And are

So the our of volume but is opportunities, a bit. just those back dialed volume there the little stock market

Justin Bergner

Trifleet whether opportunities, any seeing it Okay. rail Excellent. additional for it's investment expensive still classes? most are then is new asset or lastly, of areas cars, other or And pretty across outside engines direct or you

Robert Lyons

they've similar But investment. months good new continuing a are Yeah. where so were to a gave regards very -- XX We're we for to getting did we're from we're with demand there the the had -- residual beginning returns ownership the up containers as or there we in Well, standpoint the taking Trifleet far again, direct trends heightened year. good engine that remain tank early attractive focused seen very, as prices. very year And not return quarter last they making at aircraft engines sure I see asset would the ago. prices. undue our say of yes, side, have and encouraged we from the an with But from by materially I'd very say to on of Cost business. of risk we're

we class Very to continue there look environment, that like do some for opportunities but the We absolutely so have and in volume we how well. look. term to this of current much continuing be mindful are as much asset also long of to

Justin Bergner

luck role. of on And you. Thank the Great. best CEO

Robert Lyons

Justin. it. you, Appreciate Thank

Operator

take [Operation from our Justin with We'll question Instruction] Long next Stephens.

Justin Long

you're the reflecting but the about just on in to being seeing beginning range X% still right a taking year, that in for talked lease follow-up. LPI? range the for to At the the rates acceleration comment the year. XX%, the back Is the of the about earlier of you LPI Thanks start

Robert Lyons

plus range. of in some already sit were Justin, his that that our in of right quarter. XX% first lot we quarter, plus Where and that Yes. around still saw we thinking we anticipated right had -- We thinking And the a first guidance. some into baked now, mentioned we're X% in to of there earlier, in in as Tom comments the the fortunately trends

you still on appropriate update quarter second as that's now, in the right but of we'll So, that an range.

Justin Long

the America cycles step and one on changed thinking Markets last perspective in When lot the been take leasing And a the the both from and back, year you for that's from your me, longer-term? those us macro obviously to conflict trajectory and Ukraine. could multi-year update you're a thoughts a in Russia including Europe, just how two start around North railcar about you Okay. there's

Brian Kenney

Well, with start Sure. to will from beneficial America the the because of and investment opportunities truck-to-rail be in the attractive Europe longer-term. to we've there initiative terms in be of product remain think Europe very generate continue effort cohesive green course last will think compared the well attractive. North We Europe as think consistently, than the in here let's seen years, cycle America. more us moving relative to America that case. in more I return push few into able been what Europe on continued the to in in North a the consistent over in We've Europe that with dynamics We North to quite in

where we'll what negative a have the cycle environment over And long lease the very right run holds. do what's you playing LPI, bit platform able more and encouraged place very in already little excited I'm about there. So, in we or to It to what America, as but outstanding be with North opportunity new difficult a trying our sure period. negative know, analyze now, far course new of the appropriate. very predict But of seven-year to was real of as rate it order of and term real spot we're out we positive. we make can a those that be we're and that as And full is with opportunities, working aggressively stretch trends time, to that term the turned are take customers cycle advantage going terms -- six- the in to

Justin Bergner

Okay. Thanks for again the time.

Brian Kenney

you. Thank Yes.

Operator

queue. this Shari additional to would to any we turn like no in for closing conference or the At Hellerman remarks. back one else the time, have I

Shari Hellerman

like would everyone I for Thank follow-up participation thank me with this call their contact to questions. you. Please on the morning. any

Operator

gentlemen. This and Ladies concludes appreciate participation. We today's conference. your

now may disconnect. You