Saia Inc. today, Oct. 26, reported its third-quarter 2007 results:
Results included a pretax gain of $1.7 million from the sale of real estate. On a pro-forma basis including results from The Connection Co. and Madison Freight Systems acquisitions, tonnage decreased 7 percent. The tonnage decrease reflects a 2 percent decline in shipment count and a 5 percent decrease in weight per shipment. Pro-forma yield increased 8 percent due primarily to the impact of mix changes — increasing length of haul and declining weight per shipment.
“While acquisitions and expanded geography provided revenue growth, reduced bills per pickup and weight per shipment challenge our ability to achieve targeted productivity and cost performance,” said Rick O’Dell, president and chief executive officer of Jones Creek, Ga.-based Saia. “Our margins were also impacted by accident severity and our commitment to service lanes to and from our expanded Midwest geography. While we are growing these lanes, we did not achieve targeted density and associated margins due primarily to the current economic environment.
“We believe our focus on growing business to achieve density benefits in our existing geography combined with cost management will allow us to improve margins over time,” O’Dell said. “However, the current environment requires we better align costs, both fixed and variable, with volumes. Saia employees continue to prove their commitment and ability by providing excellent service to our customers.”
Year-to-date 2007 results compared to year-to-date 2006 from continuing operations: