Saia nearly doubles 3Q net income

user-gravatar

Saia Inc. on Wednesday, Oct. 26, reported third-quarter 2011 revenues of $268 million, an increase of 14 percent from the prior-year period; operating income of $9.6 million, up 47 percent compared to $6.5 million; net income of $4.8 million compared to $2.5 million; and an operating ratio of 96.4 compared to 97.2. Less-than-truckload tonnage increased by 2.6 percent; LTL shipments per workday were flat with a 2.6 percent increase in weight per shipment.

“We continue to capitalize on an improved industry environment by taking prudent pricing actions across our customer base,” said Rick O’Dell, president and chief executive officer of the Johns Creek, Ga.-based company. “Again this quarter, we achieved meaningful increases in contract renewals from customers who value Saia’s service quality. In addition, our annual general rate increase of 6.9 percent was effective on August 22nd. We continue to see upside with yield improvement and business mix management and believe that steady increases will continue.”

O’Dell said Saia’s third-quarter results were impacted by higher costs from health care, purchased transportation and maintenance. “These cost challenges held back margin improvement in the quarter and further validate the need for continued pricing progress,” he said. “Cash flow is solid, our balance sheet is strong, and we are again investing in the business.”

Year-to-date revenues were $777 million compared to $678 million in the prior-year period, an increase of 15 percent; operating income was $22.0 million compared to $10.3 million; and net income was $8.9 million compared to $1.3 million. The company’s operating ratio was 97.2 compared to 98.5.