Saia reports lower 2Q operating income on higher revenues

user-gravatar

Saia today, July 25, reported its second-quarter 2008 results:

  • Revenues were $276 million, an increase of 9 percent over the prior-year quarter.
  • Operating income was $10.9 million compared to $14.6 million.
  • Net income was $6.2 million compared to $7.4 million.
  • Operating ratio was 96.1 vs. 94.2.
  • LTL tonnage was down 1.9 percent as LTL shipments were down 2.6 percent with a 0.7 percent increase in weight per shipment.
  • LTL yield was up 10.8 percent primarily due to the impact of higher fuel surcharges and longer length of haul.
  • Year-to-date 2008 results from continuing operations compared to year-to-date 2007:

  • Revenues were $525 million compared to $485 million.
  • Operating income was $12.9 million compared to $21.6 million.
  • Net income was $5.4 million compared to $10.4 million.
  • “Second-quarter margins declined compared to the prior-year quarter primarily due to the weak shipping environment with expenses further impacted by escalating fuel cost and pricing pressure,” said Rick O’Dell, president and chief executive officer of Johns Creek, Ga.-based Saia. “We continue to address the current challenging environment through Saia-specific initiatives including increased marketing efforts and growth in synergy revenue.”

    O’Dell said that in spite of a challenging environment, the compamy improved its operating ratio by three points compared to the seasonally weak first quarter. “While I am pleased with this improvement compared to first-quarter results, there is still work to be done,” he said. “We believe Saia is well-positioned to take advantage of any future industry consolidations and an improving economy.”

    Top Stories