Pacer reports higher earnings, revenue
The logistics company Pacer International Inc. said it had profit of $13.8 million for the quarter ending June 27, compared to $12.5 million in the same 2007 period.
Revenues were $518.4 million compared to $474.9 million for the same 2007 quarter.
“During the second quarter of 2008, Pacer continued to show improvement in its overall financial performance. This was accomplished during a period of difficult economic conditions including inclement weather and floods in the Midwest, which resulted in a railroad embargo of Midwest traffic for about one week. We are particularly pleased with our intermodal segment where we were able to overcome the difficult conditions and improve performance,” said Michael E. Uremovich, chairman and chief executive officer. “Also, during the second quarter of 2008, we reorganized our intermodal segment to reflect our core strategy of placing additional emphasis on retail customers and door-to-door services.”
Intermodal segment income from operations increased $7.5 million from the 2007 quarter, while logistics segment income from operations declined $3.4 million for the 2008 quarter due to excess capacity, declining prices and higher transportation, and fuel costs affecting the company’s trucking units.
The company said its truck services unit also incurred increased claim costs and bad debt expense due to customer bankruptcies during the 2008 period compared to the 2007 period.