Saia posts higher 2Q profit

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Saia

Saia Inc. on Wednesday, July 27, reported improved second-quarter 2011 results on stronger revenue, improved pricing fundamentals and increased tonnage. Revenues were $266 million, an increase of 15 percent. Operating income increased 41 percent to $8.3 million compared to $5.9 million, net income was $3.36 million compared to $1.98 million, and the company’s operating ratio was 96.9 compared to 97.5.

Less-than-truckload tonnage increased by 4.5 percent as LTL shipments per workday were up 3.0 percent with a 1.5 percent increase in weight per shipment. LTL yield was up 9.6 percent due to the impact of higher fuel surcharge and measured pricing actions.

Year to date, revenues were $509 million compared to $444 million in the prior-year period, an increase of 15 percent. Operating income was $12.3 million compared to $3.7 million, net income was $4.1 million compared to a net loss of $1.2 million, and the company’s operating ratio was 97.6 compared to 99.2.

“I continue to be encouraged that improvements in the transportation landscape have permitted us to employ prudent pricing actions across our customer base,” said Rick O’Dell, president and chief executive officer of Johns Creek, Ga.-based Saia. “We continue to achieve increases in contract renewalsm which are greater this quarter than those secured in the first quarter.”

O’Dell said that as in prior quarters, Saia’s measured pricing actions have resulted in deselecting a number of unprofitable accounts. “This is part of a slow but steady improvement plan and is a welcome change from the challenging pricing and volume environment in which we had been operating the past several years,” he said.

O’Dell said the quarter was not without its challenges, including significantly higher costs from health care, purchased transportation, maintenance and self insurance costs. “We continue to focus on service and productivity initiatives, which will produce improvements in terminal cost per freight bill,” he said. “We believe Saia is well positioned to take advantage of any future industry consolidations and to capitalize on what appears to be improving industry fundamentals.”