Pacer cuts earnings estimate

Pacer cuts earnings estimate

Third-party logistics provider Pacer International on Thursday cut its second-quarter earnings estimate, blaming the recent West Coast port truckers' strike and growing rail congestion.

"We have now closed May financials and the impact of the work stoppage, coupled with railroad service issues, has had an impact on our financial results," said Don Orris, Pacer chairman and chief executive, in a statement. "We now expect our second quarter earnings per share to be in the $.24 to $.27 range. At this time we do not expect this one-time event to change our earnings estimate of $1.22 to $1.28 for the year."

Pacer said that the April and May work stoppage by independent truckers forced Union Pacific to temporarily embargo some terminals in the Northern California and "inhibited Pacer's ability to deliver its customers' freight. This had an impact on Pacer's Stacktrain, Cartage and Rail Brokerage operations, with some customers switching their transportation requirements to other means and to other railroads. These disruptions also interrupted activities at some of the major shipping terminals on the U.S. West Coast."