Less-than-truckload carrier Saia Inc. reported second-quarter income increased slightly from a year ago, but operating income declined.
Net income increased to $13.57 million, or 55 cents per share, from $13.5 million, or 56 cents, a year earlier.
Revenue jumped 12.9% to $330 million, the largest increase in seven years, as LTL shipments rose 5.5% and tonnage gained 6.9%.
Operating income declined to $22.7 million from $23.3 million the prior year on higher insurance expenses due to accident severity. Claims and insurance costs increased $8.3 million from the second quarter last year.
“The higher accident severity in the second quarter masked the strong tonnage growth and favorable pricing trends that we achieved,” CEO Rick O’Dell said in a statement.
“The top-line growth driven by last year's investment in sales and marketing resources coupled with effective yield management provided the opportunity to overcome a capacity constrained environment, which significantly increased costs for driver recruiting, training and purchased transportation,” O’Dell said.
Saia ranks No. 25 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.