Intermodal and logistics services provider Pacer International posted a $1.4 million profit in the April-June period, up from a $7.3 million loss a year earlier, as its intermodal and logistics units improved.
Revenue rose 6.5 percent to $401 million, as receipts in its dominant intermodal segment grew a slight 0.6 percent to $280 million while logistics sales rose 22 percent to $121 million.
By The Numbers: U.S. Intermodal Shipments.
Pacer has been going through a major shift in its business plan, and shedding its traditional wholesale business in which it sold low-rate train space to other intermodal marketing companies. Last fall, it renegotiated a long term rates contract with Union Pacific Railroad; UP is now taking over much of its wholesale volume, and rates have since been rising throughout the industry.
Now, Pacer targets its intermodal line on retail business with final shippers, has boosted its logistics operation and works on service upgrades and cost savings.
As a result, while intermodal revenue increased just $1.8 million from a year earlier, that unit’s operating profit grew $12.4 million. The logistics profit rose $3.1 million while logistics sales rose $22 million.
Chairman and CEO Daniel W. Avramovich said Pacer is showing “sustained success in our transformation to a direct to end-customer integrated service model. The service improvements we have achieved are allowing us to gain new customers and add higher valued freight to our domestic and international transportation networks.”
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