Pacer International reported its net income in the second quarter of 2013 totaled $1.9 million, compared with $1.3 million in the same quarter in 2012.
Quarterly revenue for the asset-light North American freight transportation and logistics services provider totaled $238.0 million, slumping 35.4 percent year-over-year from $368.3 million. The decrease was mainly caused by the implementation of a new cross-border agreement with Union Pacific, in which Pacer no longer collects and passes through the rail transportation costs to automotive intermediaries servicing the U.S.-Mexico business, as well as lower volume in the intermodal and logistics segments, the Ohio-based company said.
The logistics segment posted a $2.8 million operating loss for the second quarter, the ninth consecutive quarterly loss, according to Stifel Transportation & Logistics Research Group. Stifel said it believes there is an “above average” risk that Pacer’s logistics segment will not achieve a breakeven run rate by the end of 2013, although Pacer still expects it.
Year-to-date, net income increased $2.2 million from the 2012 period to $3.2 million, and revenue from January to June totaled $470.7 million, plummeting $243.5 million year-over-year.