Intermodal provider Pacer International had a 600 percent leap in third quarter profit to $6.6 million, as income from operations tripled and it recorded $2.4 million in other income from sale of railcars.
Revenue from all business lines grew 3 percent from a year earlier to $376 million, while receipts from its core intermodal middleman service rose 18.2 percent to $302 million. But Pacer said sales at its logistics unit fell 33 percent to $74 million, mainly from an “absence of the low-margin military shipments in our international operations.”
Overall, Chairman and CEO Daniel Avramovich said the results show Pacer continuing to “focus on enhancing our capabilities while reducing our cost structure.” The company raised its full-year 2011 earnings guidance.
For 2012, Pacer offered a “cautious early look,” expecting sales of $1.5-$1.525 billion compared with $1.475-$1.5 billion projected for 2011.
Chief Financial Officer John Hafferty also said since Pacer is now “debt-free for the first time in our history as a public company,” it has “cash to reinvest back into our business.”