SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
--------------------------------------------
Date of Report (Date of Earliest Event Reported) December 8, 1997
GATX CORPORATION
(Exact Name of Registrant as Specified in its Charter)
New York 1-2328 36-1124040
(State or other jurisdiction (Commission file number) (I.R.S. employer
of incorporation) identification number)
500 West Monroe Street, Chicago, Illinois 60661-3676 (Address of principal
executive offices)
Registrant's telephone number, including area code (312) 621-6200
<PAGE>
Item 5. Other Events
Today, December 8, 1997, GATX Corporation issued the following press
release:
"GATX Corporation (NYSE:GMT) today announced that it has completed a
strategic, operating and asset review of GATX Terminals Corporation. The review
was undertaken in response to dramatic changes that have occurred in the
petroleum storage industry.
"As a result of the strategic and operating review, a number of
initiatives have been concluded including realignment to better meet customer
needs, head count reductions and other cost saving programs, in addition to the
recently announced senior management changes at GATX Terminals. The just
completed asset review has identified the facilities that are not necessary to
meet strategic objectives and those whose value is impaired in light of the
changed market circumstances. Those facilities which are not an integral part of
the petroleum and chemical distribution network will be sold or removed from the
marketplace. As a result of this asset evaluation, GATX Terminals expects to
take a special charge in the fourth quarter of 1997.
"Also in the fourth quarter, GATX Logistics expects to take a charge to
revalue certain of its assets to better reflect current economics within the
industry. Together, these charges are expected to total approximately $150
million after-tax, the major portion of which will relate to GATX Terminals.
"Ronald H. Zech, Chairman and CEO of GATX stated, 'In all areas of
GATX, we have initiated a number of programs designed to increase earnings and
provide our shareholders with superior returns. The steps announced today will
result in an organization that is better positioned for near- and long-term
growth. In addition, I would like to reinforce that GATX expects to achieve
record operating results in 1997 for the fourth consecutive year. Further
information resulting from today's announcement will be communicated with fourth
quarter earnings.'
"With more than 700 million barrels of annual throughput, GATX
Terminals Corporation is one of the world's largest providers of bulk liquid
storage and distribution. GATX Terminals offers its petroleum and chemical
customers a vast network of bulk liquid storage and pipeline distribution
services.
"GATX Logistics, headquartered in Jacksonville, Florida, is one of the
leading providers of contract logistics services. It helps its broad
customer-base store, process and deliver products through a wide range of
integrated services.
"GATX Corporation provides approximately $6 billion of service-enhanced
assets primarily used to help its customers transport, store or distribute their
products and
1
<PAGE>
information. GATX's assets include railcars and locomotives, bulk liquid
terminals and pipelines, ships, commercial aircraft, technology equipment and
other assets and related services worldwide. In addition, GATX offers a variety
of financial services focused on enhancing the value of owned and leased assets.
"This press release includes statements which may constitute
forward-looking statements made pursuant to the safe harbor provision of the
Private Securities Litigation Reform Act of 1995. This information may involve
risks and uncertainties that could cause actual results to differ materially
from the forward-looking statements. Although the company believes that the
expectations reflected in such forward-looking statements are based on
reasonable assumptions, such statements are subject to risks and uncertainties
that could cause actual results to differ materially from those projected."
2
<PAGE>
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, duly authorized.
GATX Corporation
December 8, 1997 By: /s/ David M. Edwards
--------------------
David M. Edwards
Vice President Finance and
Chief Financial Officer
3
<PAGE>
