Pacer’s 2nd quarter profit drops 14%
Concord, Calif.-based third-party logistics and freight transportation provider Pacer International Inc.’s second quarter net income declined 13.8 percent to $12.5 million, compared to $14.5 million in the same period last year.
Operating income in the latest quarter dropped 14.7 percent to $21.5 million, with intermodal income from operations down 10.9 percent to $24.7 million. The logistics segment improved 41.7 percent to $1.7 million but corporate expenses were $1.2 million higher than last year at $4.9 million.
Pacer’s consolidated revenue gained 3.6 percent in the second quarter to $474.9 million from $458.2 million, reflecting improved intermodal volumes, the company said.
“We are pleased to see intermodal volumes for our Stacktrain operation up 7.3 percent with increases in all three lines of business, and for our rail brokerage operation up 1.7 percent compared to last year,” said Mike Uremovich, Pacer’s chairman and chief executive officer. “However, there still is excess capacity in the market that has led to lower pricing and margins.”
Uremovich added that the results include $1.3 million of costs related to the initial vesting in June 2007 of restricted stock awards and $300,000 of additional severance costs during the 2007 quarter.
After six months, Pacer’s net income slumped 28.5 percent to $20.3 million from $28.4 million in the first half last year. Operating income decreased 27.6 percent to $35.9 million while consolidated revenue was up 1.3 percent to $940 million.