On the heels of reporting its third quarter results, Pacer International has announced new arrangements with Union Pacific Railroad
. Through the new deal, Pacer will have continued access to the entire UP intermodal rail network, and a new rate structure with the company.
The new arrangement also involves an increased focus on door-to-door integrated intermodal services with coordination and control of equipment, technology, and service delivery. In addition, Pacer's portfolio of intermodal, trucking, and logistics services is positioned to meet shipper requirements.
"We are delighted to announce that Pacer and UP have entered into new multi-year arrangements that provide Pacer with continued access to the entire UP network," said Michael Uremovich, chairman and CEO of Pacer. "The direct beneficiaries of the arrangements are companies seeking door-to-door intermodal services who demand a higher degree of service delivery integration and greater efficiency."
Separately, the asset-light North American freight transportation and logistics provider posted its third quarter performance, which included decreased revenue and income despite efforts to cut back. The company's net income was $0.6 million, versus $20.8 million in the year-ago quarter. Revenue dropped to $418.7 million from $557.8 million for the third quarter of 2008.
During the third quarter, Pacer completed an amendment to its credit agreement, closed the sale of certain assets of its truck services unit and recorded a gain of $1.4 million on the transaction in selling, general and administrative expenses. The company also reduced its workforce by 253 people, with $2 million in severance expenses.
While the company saw improvement in volumes within its intermodal segment from the second quarter, income from operations was down $30 million to $4.9 million, compared with $34.9 million in the 2008 quarter.
Within its logistics segment, the company reported a loss of $0.2 million, compared with an income of $1.7 million in the year-ago quarter.
"Though we remain in challenging economic times, we are very encouraged by our financial and organizational progress during the third-quarter, and by our new arrangements with UP which will allow us to continue to deliver unparalleled value to our customers," said Brian Kane, chief financial officer of Pacer.
. Through the new deal, Pacer will have continued access to the entire UP intermodal rail network, and a new rate structure with the company.
The new arrangement also involves an increased focus on door-to-door integrated intermodal services with coordination and control of equipment, technology, and service delivery. In addition, Pacer's portfolio of intermodal, trucking, and logistics services is positioned to meet shipper requirements.
"We are delighted to announce that Pacer and UP have entered into new multi-year arrangements that provide Pacer with continued access to the entire UP network," said Michael Uremovich, chairman and CEO of Pacer. "The direct beneficiaries of the arrangements are companies seeking door-to-door intermodal services who demand a higher degree of service delivery integration and greater efficiency."
Separately, the asset-light North American freight transportation and logistics provider posted its third quarter performance, which included decreased revenue and income despite efforts to cut back. The company's net income was $0.6 million, versus $20.8 million in the year-ago quarter. Revenue dropped to $418.7 million from $557.8 million for the third quarter of 2008.
During the third quarter, Pacer completed an amendment to its credit agreement, closed the sale of certain assets of its truck services unit and recorded a gain of $1.4 million on the transaction in selling, general and administrative expenses. The company also reduced its workforce by 253 people, with $2 million in severance expenses.
While the company saw improvement in volumes within its intermodal segment from the second quarter, income from operations was down $30 million to $4.9 million, compared with $34.9 million in the 2008 quarter.
Within its logistics segment, the company reported a loss of $0.2 million, compared with an income of $1.7 million in the year-ago quarter.
"Though we remain in challenging economic times, we are very encouraged by our financial and organizational progress during the third-quarter, and by our new arrangements with UP which will allow us to continue to deliver unparalleled value to our customers," said Brian Kane, chief financial officer of Pacer.
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