Pacer International reported net income in the first quarter of 2013 was $1.3 million, improving from a net loss of $0.3 million in the first quarter of 2012.
The asset-light North American freight transportation and logistics services provider’s income from operations in the first quarter rose by $2.4 million year-over-year. Intermodal income from operations improved by $1.6 million, or 19.5 percent, while the logistics loss from operations was $2.8 million, decreasing by $0.4 million, or 12.5 percent. The logistics segment’s operating loss in the first quarter was the eighth consecutive quarterly loss, according to Stifel Transportation & Logistics Research Group.
However, quarterly revenue was $232.7 million, dropping 32.7 percent from $345.9 million in the same quarter in the previous year. Intermodal revenue declined $104.5 million as expected, primarily driven by the implementation of a new cross-border agreement with Union Pacific, which means Pacer no longer collects and passes through the rail transportation costs to automotive intermediaries servicing the business between the U.S. and Mexico. Meanwhile, logistics revenue in the first quarter fell 13.9 percent year-over-year to $52.6 million.
“Results from operations improved versus 2012 in both the intermodal and logistics segments,” said Daniel W. Avramovich, chairman and CEO, in a written statement. “Our 20 percent improvement in intermodal operating income reflects our focus on profitable network growth, holding the line on both operating and (selling, general and administrative) costs, and successfully operationalizing our new cross-border agreement with Union Pacific.”
Pacer expects revenue in 2013 to range between $1.0 billion and $1.1 billion, the Ohio-based company said.