GATX Corporation, which has a focus on railcar leasing, has reported a drop in income for the second quarter of 2017, down from $61.2 million for the same period the previous year to $53.4 million currently, despite recording over $1 million in net gains as a result of its planned exit from most of its marine financing business.

Brian Kenney, president and chief executive officer of GATX state: “While North American railcar loadings and railroad velocity have trended favorably over the last few quarters, a recovery in the North American railcar leasing market continues to be hampered by a significant oversupply of existing railcars and a large railcar manufacturing backlog.”

GATX’s fleet utilization decreased slightly to 98.8% during the quarter, although the business said it continued to “displace competitors” and protect high fleet utilization.

The renewal lease rate change of GATX’s Lease Price Index was a negative 21.4% in the quarter, as absolute railcar lease rates have remained flat so far in 2017.

Kenney added: “Our commercial team has been successful in keeping existing cars on lease, as evidenced by our renewal success rate of 75.1%.”

At June 30, 2017, Rail North America’s wholly-owned fleet comprised approximately 121,000 railcars, including approximately 17,100 boxcars.GATX reported its Rail International’s segment profit was $16.6 million in the second quarter of 2017 compared to $13 million in the second quarter of 2016.

Rail International reported segment profit of $30 million year-to-date 2017, compared to $25.6 million for the same period of 2016. The improvement in segment profit was primarily driven by lower maintenance expenses, the company said.

For the year to the end of June, GATX Rail Europe’s (GRE) fleet consisted of approximately 23,000 cars and utilization was 95.7%, compared to 95% at the end of the prior quarter and 94.8% at the end of the second quarter of 2016.

Kenney said: “Rail International is performing in line with our original 2017 expectations. At American Steamship Company, 12 vessels are sailing under favorable operating conditions.

The Rolls-Royce and Partners Finance affiliates continue their excellent performance, and 2017 investment volume is strong due to the solid demand for aircraft spare engines.”