PACER NET INCOME DOWN 65 PERCENT

PACER NET INCOME DOWN 65 PERCENT    Pacer International has reported a second-quarter net income of $2.4 million, down 65 percent from the same period of 2000. The company said the decrease was due, in part, to a $1.9 million increase in interest due to borrowings for acquisitions made in the second half of 2000.
   Second-quarter consolidated revenues totaled $431.5 million, up 44 percent from the second quarter of 2000. Due to recent acquisitions, the company’s retail segment, a logistics and supply chain management provider for manufacturers and retailers, accounted for $142.6 million of the increase. Revenues for the wholesale segment, which provides double stack rail transport, increased $1 million.
   Operating income decreased approximately 29 percent to $14.2 million.
   Pacer’s revenue for the year-to-date was $871.8 million, up 43.3 percent from the first half of 2000. The company’s net income was $2 million in the same period, down 82.3 percent. Operating income was $25.6 million, down 32 percent.
   The retail segment recorded a 128.3 percent increase in revenues in the first half of 2001. Operating income for the segment increased approximately 2.9 percent to $10.7 million. Revenues for the wholesale segment were $400 million, slightly down from the same period of 2000. Operating income for the wholesale segment slid to $14.9 million, 45.2 percent off last year’s mark.
   “We expect to continue to see improved results in income from operations for the remainder of 2001” said Don Orris, Pacer International chairman and chief executive officer.
   Pacer International is a non-asset-based North American logistics provider based in Concord, CA.