PACER INTERNATIONAL SEES HIGHER EARNINGS IN 2000

PACER INTERNATIONAL SEES HIGHER EARNINGS IN 2000

   Pacer International, the North American transportation and logistics services provider, reported net income of $14.8 million in 2000 on revenues of $1.28 billion, up 38.1 percent over 1999.

   Operating income improved 32.1 percent to $63.4 million, including a $7.7-million merger-related charge.

   The Walnut Creek, Calif.-based company said the improved results were due to increased business in the wholesale segment, which provides double-stack rail services, and the retail segment, which provides freight logistics services.

   The wholesale segment saw revenue improve 14.2 percent to $814.7 million and operating income jump 27.8 percent to $49.7 million    Containers handled increased 13.1 percent.

   For the retail segment, revenues rose 116.1 percent to $503.9 million. About $102 million of that increase was attributed to the acquisitions of Conex Freight Systems on Jan. 13; intermodal marketing company Rail Van Inc. on Dec. 22; RFI Group on Oct. 31; and GTS Transportation Services on Aug. 31. The retail segment's operating income rose 135.2 percent to $21.4 million, minus the merger charge.

   The $7.7-million merger charge, recorded in December, provided for consolidating retail segment operations in Columbus, Ohio, and the acquisition of Rail Van.

   “Our consolidation of retail operations is progressing smoothly and is ahead of schedule,” said Don Orris, chairman and chief executive officer of Pacer International. “We expect to have our rail and truck brokerage and our contract logistics operations consolidated by mid-year.

   Including the merger charge, Pacer reported a fourth-quarter loss of $2.5 million. Revenue for the quarter rose 20.7 percent to $365.9 million, while operating income was $7 million. Operating results were also impacted by a $4.4-million maintenance repair charge when some outsourced repair functions were brought in-house.

   Pacer International in December filed with the Securities and Exchange Commission to conduct an initial public offering of common stock, expected to take place in the third or fourth quarter, subject to market conditions.