After three consecutive quarters of losses, Pacer International (PACR) posted a fourth-quarter profit before Wednesday's opening bell.
The freight transportation provider weighed in with net income of $10 million, or 29 cents a share, for the quarter, compared with a loss of $64 million, or $1.83 a share, a year ago.
The company cited lower costs for the profit increase.
Revenue dropped nearly 18% to $420.2 million for the quarter from $510.3 million.
"Though the economic environment in the fourth quarter continued to suppress demand and pressure margins, we took additional substantial steps toward sustained profitability while reducing debt by $31.5 million during the fourth quarter," CEO Brian Kane said in a statement.
"We returned to positive operating income and cash flow in the second half of the year and we have significant availability under our amended credit agreement."
The company entered into new multi-year agreements with Union Pacific (UNP) in the quarter to transport domestic big box shipments secured by Pacer for transportation by Union Pacific. The deal brought in a cash payment of $30 million and a gain of $17.5 million in other income was also recorded from the deal.
Shares of the company were trading up nearly 11% in early trading Wednesday, at around $3.35 per share.
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