PACER INTERNATIONAL REBOUNDS IN 1ST QUARTER
Pacer International, the non-asset-based North American third-party logistics provider, returned to the black, reporting net income of $3.7 million for its fiscal first quarter ended April 5.
The net profit offset a first quarter 2001 net loss of $400,000 for the Concord, Calif.-based company. Earnings before interest, taxes, depreciation and amortization were $18.3 million, up 14.4 percent.
Net revenue improved 2.8 percent to $83.2 million. Operating income jumped 37.7 percent to $15.7 million, while gross revenues fell 13.2 percent to $382.4 million. Pacer said revenues were negatively impacted by the general economic downturn and a cyclical slowdown in the automotive sector.
Pacer's wholesale segment, which provides double-stack rail transportation services, was responsible for all of the operating income increase. The segment saw operating income jump 65.2 percent to $11.4 million, while revenue was roughly flat, at $204.7 million.
Pacer's retail segment, which provides logistics and supply-chain management services to manufacturers and retailers, saw operating income fall 4.4 percent to $4.3 million, while revenue fell 19.4 percent to $204.9 million. Loss of business due to the weakened economy was offset by reduced headcount related to the retail segment's consolidation and integration activities during 2001 and elimination of goodwill amortization expense in 2002.
'We are encouraged by the financial results of both the retail and wholesale segments and the improved year-over-year results,' said Don Orris, chairman and chief executive officer of Pacer International.
PACER INTERNATIONAL REBOUNDS IN 1ST QUARTER