Pacer boosts earnings despite rail congestion
Pacer International Inc., the Concord, Calif.-based intermodal operator, boosted its fourth quarter net profit 49 percent to $17 million, despite congestion that affected much of the West Coast rail system.
“Our strong fourth quarter performance demonstrated Pacer International’s ability to overcome challenges in the external environment, while also resolving some legacy issues that confronted us,” said Don Orris, chairman and chief executive officer of Pacer. He cited “a difficult rail service environment that affected a significant portion of our revenue and reduced the rail volume incentives we receive.”
Revenue for the latest quarter increased 16 percent to $530.8 million, from $456.3 million in the fourth quarter of 2003.
Pacer’s interest expense in the fourth quarter decreased 16 percent to $2.5 million from $3 million in the same quarter of 2003, due to reduced debt levels and to lower interest rates that resulted from repricing its senior credit facility during the fourth quarter of 2003.
For the fiscal year ended Dec. 31, Pacer lifted its net income 51 percent to $47.2 million from $31.3 million in 2003. Revenue for 2004 totaled $1.8 billion.
