Saia swings to loss on surging fuel costs, weak pricing

The Associated Press

4/25/2008

JOHNS CREEK, Ga. — Trucking company Saia Inc. said Friday it swung to a first-quarter loss, hurt by weak pricing and demand compounded by “unprecedented” fuel prices and severe winter weather.

The company posted a loss of $833,000, or 6 cents per share, compared with a year-ago profit of $3 million, or 21 cents per share.

Saia estimated the rapid increase in fuel prices hurt the quarter by 6 cents per share. Severe winter weather had a 2-cent-per-share impact, the company said.

Analysts were expecting break-even earnings per share, according to a poll by Thomson Financial.

Revenue rose 8 percent to $249.3 million, from $231.8 million in the prior-year period.

“We are operating in a difficult economic environment with weak tonnage demand, increasing price competition and escalating fuel prices which continue to pressure margins,” President and Chief Executive Rick O’Dell said in a statement. “We are managing through this challenging environment with our targeted sales and marketing programs to build density while continuing to pursue engineered cost and efficiency initiatives.”