Saia reports $1.74M 2Q net loss

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Saia Inc. today, July 24, reported second-quarter 2009 compared to second-quarter 2008 results from continuing operations:

  • Revenues were $218 million, a decrease of 21 percent;
  • Operating loss was $0.4 million compared to operating income of $10.9 million. The prior-year quarter included recognition of an alternative fuel tax credit related to prior periods;
  • Net loss was $1.74 million compared to net income of $5.33 million;
  • Operating ratio was 100.2 vs. 96.1;
  • LTL tonnage was down 6.2 percent as LTL shipments per workday were down 3.0 percent with a 3.4 percent decrease in weight per shipment; and
  • LTL yield was down 14.5 percent primarily due to the impact of reduced fuel surcharges and competitive pricing.
  • “Second-quarter margins deteriorated compared to the prior-year quarter, reflecting tonnage and yield declines,” said Rick O’Dell, president and chief executive officer of Saia, based in Johns Creek, Ga. “This is due to the weak shipping environment and lower yields impacted by increasingly competitive pricing pressure. In addition, self-insured costs for health care and accident severity resulted in higher expense in the second quarter of 2009. We continue to address the current challenging environment by taking aggressive actions to control costs and improve productivity through focused engineered initiatives.”

    Saia previously announced the company had implemented a reduction in compensation equal to 10 percent of salary for the leadership team and a five percent wage reduction for hourly, linehaul and salaried employees in operations, maintenance and administration, effective April 1.

    “Strong execution resulted in improvement in all key productivity metrics while continuing to deliver 97 percent on-time service,” O’Dell said. “While our results remain challenged by the overall economy, we continue to focus on Saia-specific initiatives and take prudent actions to successfully navigate through this difficult environment. We believe that Saia is well positioned to take advantage of any future industry consolidations and improvements in the economy. In the meantime, Saia’s dedicated employees remain focused on cost efficiencies to improve profits while providing strong customer service.”

    Year-to-date 2009 compared to year-to-date 2008 results from continuing operations:

  • Revenues were $425 million compared to $525 million;
  • Operating loss was $7.9 million compared to operating income of $12.9 million; and
  • Net loss was $8.0 million compared to net income of $5.4 million.