Pacer posts higher 2Q profit

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Pacer International Inc. on Thursday, July 28, said revenues for the three months ended June 30 were $386.3 million, and excluding revenues from the transitioned east-west big box business during 2010, intermodal revenues improved by $27.2 million or 9.8 percent. Income from operations increased $4.3 million or 134 percent to $7.5 million, while the company’s operating margin percentage improved to 1.9 percent compared to 0.8 percent. Net income increased by $2.8 million to $4.2 million.

“We continued on the track of improved sustainable profitability,” said John Hafferty, chief financial officer of Dublin, Ohio-based Pacer. “Our continued focus on growth and leveraging our SG&A has resulted in our positive financial results to date.”

For the six months ended June 30, revenues were $744.7 million, and excluding revenues from the transitioned east-west big box business during 2010, intermodal revenues improved by $52.7 million or 9.9 percent. Income from operations increased by $7.6 million or tripled to $11.4 million, while the company’s operating margin percentage improved to 1.5 percent compared to 0.5 percent. Net income increased $5.3 million to $6.2 million.

“The significant improvement in operating income is a nice reflection of the strides we have made in three areas, including delivery of excellent service, capacity allocation decision processes and cost controls,” said Daniel Avramovich, chairman and chief executive officer.