Saia profits rise sharply
April 27, 2012
Saia Inc.’s net income for the first quarter ended March 31 jumed to $5.54 million from $713,000 in the same 2011 quarter, the Johns Creek, Ga.-based company reported April 27. Revenues rose 11% to $269 million, and operating income nearly tripled to $11 million from $4.1 million. Operating ratio improved to 95.9 compared from 98.3.
Less-than-truckload tonnage increased by 2.6% as LTL shipments per workday were down slightly with a 3.3% increase in LTL weight per shipment. LTL yield was up 7.9% due to the impact of favorable pricing actions and higher fuel surcharges.
“Saia’s excellent service quality and continued progress with yield in an improving environment provided the foundation of our margin improvement in the quarter,” said Rick O’Dell, president and chief executive officer. “This higher yield combined with continued cost optimization initiatives throughout our network were the primary drivers of the 240 basis point improvement in our operating ratio.”
O’Dell said meaningful margin improvement was achieved in the quarter in spite of some expected higher wage and benefit costs necessary to support Saia’s work force and customer requirements. “On the other hand, we benefited from the mild winter weather this year,” he said. “I am pleased with our progress on many fronts that contributed to materially improved margins for the quarter.”
O’Dell said Saia’s service was 98 percent on-time. “We saw improvements in essentially every quality metric we measure,” he said. “I believe that our fundamental execution on quality, yield management and efficiency initiatives has never been better and the stage is set for further progress.”
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