Pacer International posts higher 1Q net income, revenue

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Pacer International Inc., an asset-light North America third-party logistics and freight transportation provider, on Tuesday, May 6, reported revenue for the three-month period ended April 4 increased $44.3 million to $509.4 million compared to $465.1 million for the quarter ended April 6, 2007. Net income increased from $7.8 million to $14.3 million, an increase of 83.3 percent. Income from operations was up $10.2 million to $24.6 million.

Intermodal segment income from operations increased $12.7 million, while logistics segment income from operations declined $0.7 million due to excess capacity, declining prices and higher transportation and fuel costs affecting trucking units. The company’s truck services unit also incurred increased claim costs compared to the 2007 period.

“We are generally pleased with our performance during the first quarter of 2008, given the difficult economic and market conditions, including excess capacity, declining prices and high fuel costs,” said Michael E. Uremovich, chairman and chief executive officer of Concord, Calif.-based Pacer. “We are particularly pleased with our intermodal segment, where we were able to grow our direct customer intermodal business despite the sluggish economy.” Uremovich said Pacer’s logistics segment, particularly its truck services unit, remains challenged.