Pacer International swung to a modest fourth-quarter profit on lower expenses, though the freight transportation company's logistics segment posted a sharp decline in sales, reported Dow Jones Newswires.

    Pacer has focused on maintaining profit levels in its intermodal business in the face of rising rail and trucking costs. The company is also seeking to increase the linkages between the intermodal and logistics businesses to its customers.

    The US transportation sector was broadly expected to post improved results for the fourth quarter, coming off of a better-than-expected, though subdued, peak shipping season.

    Chief financial officer John Hafferty said Pacer would look for opportunities to reinvest our cash back into its business for future growth.

    Pacer reported a profit of $1.1 million, or 3 cents a share, from a year-earlier loss of $1.1 million, or 3 cents. The company in October expected 5 cents to 8 cents. Revenue decreased 4.1 percent to $358 million.

    Gross margin edged up to 11.5 percent from 11.3 percent. Cost of purchased transportation services was down 4.4 percent. Interest expenses fell to $500,000 from $2.9 million.

    Intermodal revenue was up three percent while logistics revenue dropped 26 percent absent certain lower-margin military shipments in its international operations.

(Source:http://www.cargonewsasia.com/index.aspx)