PACER INTERNATIONAL SEES 1ST-QUARTER LOSS
Pacer International, the non-asset based intermodal and logistics provider, reported a loss of $400,000 for its first quarter, due to reduced operating income and increased interest expense tied to borrowings for acquisitions.
The first-quarter loss compares to net income of $4.4 million for the first quarter of 2000.
Operating income decreased $6.1 million to $11.4 million, despite a 43-percent jump in revenues, to $440.3 million.
Revenue for Pacer's retail segment, which provides logistics and supply-chain management services for manufacturers and retailers, increased $144.7 million to $254.2 million. Operating income was flat at $4.5 million, ass continuing growth was offset by reduced tire handling and warehousing, the company said.
Pacer's wholesale segment, which provides double-stack rail transport services, saw revenue decrease $1.9 million to $205.6 million, due to a decrease in automotive containers handled. The wholesale segment accounted for Pacer's $6.1-million drop in operating income, due to the reduced automotive shipments and higher costs for equipment, maintenance and repair.
'While we are less than satisfied with our first-quarter results, several action items are in place to dramatically improve profitability,' said Don Orris, chairman and chief executive officer. This includes consolidation of Pacer's rail operations in Columbus, Ohio; consolidating its wholesale segment's equipment fleet and taking control of the maintenance and repair of the company's equipment.
Pacer has also relocated its headquarters to Concord, Calif., from Walnut Creek, Calif.