Pacer net income up 83%
Concord, Calif.-based third-party logistics provider Pacer International Inc. on Tuesday reported first quarter net income of $14.3 million, up 83.3 percent compared to $7.8 million a year before.
Pacer’s revenue for the quarter ended April 4 improved 9.5 percent to $509.4 million from $465.1 million recorded in the first quarter of 2007.
The company said operating income from the intermodal segment increased 66.1 percent to $31.9 million. The logistics division returned an operating loss of $800,000, compared to a loss of $100,000 in the prior period. The decline was due to excess capacity, declining prices and higher transportation and fuel costs affecting Pacer’s trucking units, the company said.
“We are generally pleased with our performance during the first quarter of 2008, given the difficult economic and market conditions, including excess capacity, declining prices and high fuel costs,” said Mike Uremovich, chairman and chief executive officer. “We are particularly pleased with our intermodal segment where we were able to grow our direct customer intermodal business despite the sluggish economy. Our logistics segment and particularly our truck services unit remains challenged.”