Pacer International Reports losses for quarter, six months

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Pacer International, a Concord, Calif.-based freight transportation and logistics services provider, today reported a net loss of $7.3 million for the quarter ended June 30 – down from a $13.4 million profit during the same 2008 quarter. Revenues dropped by $139.9 million to $376.7 million, while income from expenses declined $34.7 million to a loss of $11.8 million.

For the first six months of 2009, Pacer reported a net loss of $184.7 million, including an after-tax goodwill impairment charge of $162.1 million. Excluding the impairment charge, the net loss was $22.6 million. Revenues for the six months, decreased $284.1 million to $735.3 million compared, while income from operations was a loss of $234.9 million compared to income of $46.0 million in the 2008 period. The 2009 low period includes a $200.4 million pre-tax, non-cash goodwill impairment charge.

“While demand and economic conditions in general remained very difficult leading to a second quarter loss, there were some positive signs that our business levels were stabilizing and even improving in some key areas during the quarter,” said Brian Kane, chief financial officer of Pacer. “We continue to take the steps necessary to reduce our costs to benchmark competitive levels and provide the financial resources needed to position Pacer for future growth. Operating cash flows were much improved for the second quarter compared to the first quarter, and we anticipate returning to positive cash flow and earnings during the second half of 2009.”

On July 24, Pacer International entered into an agreement with Universal Truckload Services, Inc. and UTS Leasing, Inc. to sell certain assets of its truck services business. The completion of the transaction is subject to customary closing conditions and is expected to occur in August 2009.