Orris to retire from Pacer; 3rd quarter income up 25%
Don C. Orris, today announced his retirement within the next 12 months as chairman and chief executive officer of Pacer International Inc., just after the third-party logistics provider posted increased profit in the last quarter.
The Concord, Calif.-based company reported net income of $18.3 million in the third quarter, up 25.3 percent over $14.6 million in the same period last year. Operating income rose 31.1 percent to $31.6 million with consolidated revenue improving 3.8 percent to $458.2 million.
'The third quarter of 2006 showed strong operating cash flows as well as improved operating income in both segments over last year,' Orris said. 'Our wholesale segment’s revenues increased 10.7 percent quarter over quarter. We continue to acquire shares under our share repurchase program.'
After nine months, Pacer’s net income is up 53.4 percent to $46.8 million. Operating income improved 42.6 percent to $81.3 million, while consolidated revenue was up 2.2 percent to $1.4 billion.
Orris, 65, said of his decision to retire: 'After 44 years in the freight transportation industry, including 10 years as chairman and CEO of Pacer, it is time for me to step down from this company, which has become a leader in logistics and intermodal transportation and has a promising future.
'It is time to spend more quality time with my wife and family, including my four grandchildren, and to plan for their futures.'
Before leaving the company, Orris intends to establish a prearranged trading plan to sell up to 660,000 shares of Pacer common stock, as part of his individual long-term strategy for asset diversification and estate planning purposes, the company said.