Saia Inc. Q3 2009 Earnings Call Transcript.

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2009-10-23 12:56:09.0

Tags: Call Transcript, Customer, Earnings, Pricing Strategy, Saia Inc., Pricing, Marketing Research, Marketing, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions). Your first question comes from David Ross - Stifel Nicolaus.

David Ross - Stifel Nicolaus

First could you talk a little bit about tonnage strengths, how they developed through the quarter and what you are seeing here in October? Has it gotten any better worse either sequentially or year-over-year?

Jim Darby

Sure I will take that, Dave when we look at through the quarter July, August and September. July was down 5.9% August was down 3.1%, September was down 4.2% and that’s how we get to the LTL tonnage being down to 4.4% for the quarter. At the end of September, LTL tonnage stepped down a little bit again, and what we are seeing in October is we are running down about 8.4% around that from a year ago.

When we compare on consecutive months, it’s a long test compared to last year because of the changes that were going on during third and fourth of last year, but when we look September over October, it looked like we are down about an additional 5% on the LTL tonnage normally September to October we do expect to be down about two.

Rick ODell

This is Rick, I would also comment about we also have about 2% that would be due to a handful of specific customers worry their pricing action was taken or we had some different lane awards in a bid reselection process.

David Ross - Stifel Nicolaus

That is a function that if you guys holding your line on pricing and saying, listen if you want to get somebody out in the hall for that price go ahead but this doesn’t pay how to do it.

Jim Darby

Primarily, yes.

David Ross - Stifel Nicolaus

Then have you gone back to customers and asked for any rate increases yet, I’d imagine this is probably not the right time to do it, but if have had any success in doing that have you even tried?

Jim Darby

Yes obviously, we are looking at account by account making those types of decisions and we have got some customers where we brought some business on and it’s not – we are not getting business that’s contributing the way that it should we are going back to those customers and addressing that on a customer by customer basis.

David Ross - Stifel Nicolaus

And then can you talk a little about the synergy revenue and any regions that may have the strength or weakness more so than others?

 

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