Saia Profits Rise 17% in Third Quarter
The less-than-truckload sector began the earnings season on a high note with Saia Inc. reporting profits increased 17% in the third quarter.
Saia recorded $13.8 million, or 54 cents per share in profits versus $11.8 million, or 46 cents one year ago. Revenue fell 0.2% to $316 million but the less-than-truckload carrier came out ahead because it slashed expenses 1.2% year-over-year to $293.8 million.
Saia ranks No. 25 on the Transport Topics Top 100 list of the largest U.S. and Canadian for hire carriers.
"Third-quarter operating results reflect our continued pricing discipline and our companywide efforts aimed at achieving operating efficiencies across all areas of our network," Saia CEO Rick O'Dell said in a statement.
Overall shipments and tonnage were down, underlining the challenges that face the industry with lower demand than in 2015.
Tonnage was down 2.9% to 913,000, shipments dropped 1.2% to 1.6 million and pounds per shipment fell 1.7% to 1,114. However, revenue per shipment went up 1.9% to $179.17.
The company also said that rates increased an average of 5.7% on contractual renewals in the third quarter.
"Though the economic environment continues to offer only tepid growth, I was encouraged to see our LTL shipment trend turn positive in September for the first time since February," O'Dell said.
Saia was among several LTLs to also increase rates 4.9% in early October, which the company hopes will improve profits into 2017.
The operating ratio improved 90 basis points to 92.8% year-over-year.
Saia beat earnings estimates by 4 cents, based on a Bloomberg News survey of analysts.
