Pacer International on Tuesday lowered its earnings estimate for 2007 to between $1.50 and $1.60.
The third party logistics provider, based in Concord, Calif., said the revision indicates lower than forecasted revenue growth for the first quarter.
Pacer also announced that its board of directors has authorized the purchase of up to an additional $100 million of its common stock. This authorization would be in addition to the $23 million remaining from the $60 million stock purchase authorization approved by the board in June, 2006.
"Although our consolidated revenues and volumes remain strong and are up compared to last year's quarter, the rate of growth is less than previously forecasted," said Michael Uremovich, chairman and chief executive. "We plan to consolidate some of our operations, reduce headcount, invest in information technology systems and undertake other initiatives that could result in restructuring charges and increased expenses during 2007 and could lower earnings per share for the year."