This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Pacer In Deal With UP Railroad; Makes 3Q Profit

CONCORD, Calif. (AP) ¿ Shares of Pacer International Inc. jumped nearly 20 percent in Tuesday aftermarket trading after the logistics services provider said it has resolved a dispute with Union Pacific and turned a surprise profit in the third quarter.

The deal with Union Pacific extends and expands terms for big-box shipments under an agreement that would have expired in 2011. It also resolves claims between the two companies over domestic container transportation. Pacer said Union Pacific paid it $30 million under the new agreement, which Pacer will use to pay down a credit line by about 50 percent.

Pacer also reported that its third-quarter profit dropped to $600,000, or 2 cents per share, for the quarter ended Sept. 30, from year-ago earnings of $20.8 million, or 59 cents per share. Revenue fell 25 percent to $418.7 million from $557.8 million as the economic slump curbed freight demand.

But the results topped estimates of analysts surveyed by Thomson Reuters, who had expected Pacer to lose a penny per share on revenue of $402.6 million.

Pacer shares had risen 15 cents, or 5.9 percent, to close at $2.71 before the announcement. They jumped another 54 cents, or 19.9 percent, to $3.25 in late trading.

Copyright 2009 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
PACR $8.96 1.24%
AAPL $127.60 2.28%
FB $83.09 2.87%
GOOG $535.38 2.16%
TSLA $205.27 -0.74%

Markets

DOW 18,034.93 +208.63 1.17%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs