''Robust'' Demand Boosts SCS in 2Q

''Robust'' Demand Boosts SCS in 2Q

Copyright 2004, Traffic World, Inc.

SCS Transportation, Kansas City, Mo., the nation''s 17th-largest trucking concern, enjoyed a 40 percent rise in quarterly earnings in the second quarter as profits rose to $5.5 million on $248.2 million in revenue, compared with $3.9 million on $208.3 million in revenue a year earlier.

"Robust demand and continued improvement in profitability produced strong earnings, despite higher than expected accident expenses in the second quarter," said Bert Trucksess, chairman, president and CEO of SCS Transportation. "Both operating companies, Saia and Jevic, made steady progress in operational performance, aided by volume gains and a firmer pricing environment."

Its Saia unit added nine states to its operating territory following the first-quarter acquisition of Clark Bros. Transfer. The integration, completed in May, added 3,600 new lanes and 10,000-plus direct points in the Midwest to the Saia network, giving Saia a 30-state territory.

Saia''s revenue was $164.6 million in the second quarter, up 23.7 percent from a year earlier thanks to volume gains. Despite $1.1 million in planned integration charges and $1.4 million in higher than expected accident expenses, operating income for Saia was $9.1 million, up 15.4 percent from the second quarter of 2003.

Jevic reported $83.6 million in revenue in the second quarter, up 11.3 percent from a year earlier, as volume and yield increases contributed to higher less-than-truckload and truckload revenues. Due to revenue growth, as well as strong operating efficiency gains, operating income for Jevic more than doubled to $3.6 million from $1.6 million in the second quarter last year.