Pacer sees dramatic 3rd quarter increase
Freight transportation firm Pacer International Inc. reported Wednesday that its third quarter net profit increased 52.2 percent to $20.4 million, compared to the same period last year.
Third quarter revenue for the Concord, Calif.-based firm rose 13.7 percent to $556.2 million and operating income improved 23.2 percent to $28.7 million compared to the year-ago period.
The firm cited increased progress in growing door-to-door transportation services, steadily increasing volume on the BNSF intermodal network, further integration of pickup and delivery operations within the firm's intermodal segment, and the addition of resources to the Pacer truck brokerage operations as reasons for the third quarter increases.
'We were pleased with our financial results and cash flow in the third quarter, a quarter in which the global economy began to experience a significant downturn,' said Michael E. Uremovich, Pacer chairman and chief executive officer.
The firm's intermodal division reported operating income increased $8.4 million from the third quarter of 2007, on a 44.2 percent rise in revenue to $430.2 million.
The Pacer logistics division reported revenue up 22.7 percent to $126.8 million. However, the logistics segment did report operating income off slightly, down $100,000 to $1.8 million. Pacer pointed out that this was actually a significant increase for the division's operating income over the $3.4 million loss in the second quarter.
For the nine months ending Sept. 19, Pacer reported that revenue increased 10.8 percent to $1.58 billion, with operating income rising 29.7 percent to $76.8 million. Net income for the year-to-date jumped 43.9 percent to $48.5 million.
As for the future, Uremovich said, 'We believe our company rests on a solid financial foundation as we enter what is likely to be a difficult economic period in the fourth quarter of this year and well into 2009.'
