PACERÆS 3RD QUARTER NET INCOME DROPS 83%
Pacer International said its fiscal third-quarter net income fell 83 percent to $1.0 million, due to reduced operating income, $6.9 million in one-time charges and an $800,000 increase in interest expense due to borrowings for acquisitions.
Revenues for the quarter ended Sept. 21 was $398.1 million, up 30 percent. Income from operations, before one-time charges, dipped 3 percent to $18.3 million.
'Our third quarter results were in line with the third quarter of year 2000, which was a substantive improvement over our previous two quarters, indicating the progress we are making in the company,' said Don Orris, chairman and chief executive officer. 'The economic downturn is still adversely affecting our results, especially the automotive business segments of our wholesale and retail divisions.'
Revenues for the retail segment, which provides logistics and supply-chain management services directly to manufacturers and retailers, increased $105.8 million, reflecting recent acquisitions. Revenues of the wholesale segment, which provides doublestack rail transport services, decreased $1.2 million.
On a year-to-date basis, net income was down 83 percent to $3.0 million, on revenues of $1.27 billion, up 38.7 percent. Income from operations, before the one-time charge, decreased 22 percent to $43.9 million.
Pacer International is a non-asset based third-party logistics company, whose services offerings include intermodal and logistics.