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The Markets May 8, 2009
Calif. Transportation Firm Suspends 401(k) Match
A California transportation, freight, and logistics company has become the latest employer to suspend its 401(k) match.
Reported by Fred Schneyer
Pacer Inc., of Concord, California, said it was putting into place a broad cost-cutting effort as a result of the recession. “The continued steep decline in the economy and further deterioration of our stock price during the first quarter contributed to both the first quarterly earnings loss in Pacer’s history and to the non-cash impairment write-off. We are vigorously implementing financial and commercial measures designed to turn these financial results around,” said Brian Kane, chief financial officer of Pacer, in a news release.
Among the steps being taken, in addition to suspending the match for 2009:
- cutting 140 jobs
- pay cuts for all employees
- suspension of merit increases for 2009
- reductions in capital spending
- suspension of the quarterly dividend
- elimination of any non-critical spending.
The efficiency drive comes as Pacer suffered its first-ever quarterly loss of $177.4 million on revenues of $358 million.
“We obviously had a very, very difficult first quarter,” Michael Uremovich, Pacer’s chief executive officer, said during a conference call to discuss the results. “A number of things hit us at once. But we are acting aggressively and remain confident about our prospects.”