Friday, August 7, 2009

Troubled half year for Pacer freight and logistics group

US shipping conglomerate loses almost 20% off shares
Shipping News Feature

USA – After a troubled week, the value of shares in Pacer International Inc dropped almost a fifth at one stage yesterday.

On the 27th July the California based freight transport and 3PL provider, considered as asset light already by many, announced it was to shed the assets of its heavy haulage operation, Pacer Transport International. This to include tractors, trailers, its entire sales portfolio of contacts and customers and, subject to contract, existing leases on its properties and remaining equipment.

The buyer was named as UTSI (Universal Truckload Services Inc and UTS Leasing Inc).

This news was followed on 5th August by a simultaneous live conference call and audio webcast for investors in the group. This was to give a “heads up” before the official news released later in the day, after the markets closed, regarding the groups second quarter results and year to date analysis.

The figures showed a decrease in revenue of $ 284 down to $ 735 for the first half of 2009 compared with 2008. Revenue and income were down throughout the group.

“While demand and economic conditions in general remained very difficult leading to a second quarter loss, there were some positive signs that our business levels were stabilizing and even improving in some key areas during the quarter,” said Brian C. Kane, Chief Financial Officer of Pacer. “We continue to take the steps necessary to reduce our costs to benchmark competitive levels and provide the financial resources needed to position Pacer for future growth. Operating cash flows were much improved for the second quarter compared to the first quarter, and we anticipate returning to positive cash flow and earnings during the second half of 2009.”

See the link below for more details of these results.