SCS sees 1Q earnings dip on Jevic drop

April 24, 2006
Despite remaining profitable overall, Kansas City, MO-based SCS Transportation saw its net income drop in the first quarter compared to the same period last year as its hybrid TL/LTL subsidiary Jevic lost money

Despite remaining profitable overall, Kansas City, MO-based SCS Transportation saw its net income drop in the first quarter compared to the same period last year as its hybrid TL/LTL subsidiary Jevic lost money.

“Despite continued service consistency, Jevic volumes were impacted by a combination of increased competitive pressures, an unseasonably warm winter, and excess truckload capacity,” said Bert Trucksess, SCS chairman, president & CEO. “The volume weakness produced unfavorable operating leverage, which more than offset progress on cost management initiatives.”

He said Jevic’s revenue declined 2% to $84 million in the first quarter compared to the same period last year, while tonnage declined 5% even as yields grew 3%. First-quarter LTL tons were flat compared to the fourth quarter of 2005, while truckload tons decreased 10%, Trucksess noted. As a result of the lower business levels, Jevic reduced its workforce by approximately 8% during the first quarter and reported an operating loss of $2.3 million.

Yet SCS stayed profitable overall on the strength of profits from its Saia Inc. regional LTL subsidiary. Saia posted strong results despite the lingering impact of Hurricanes Katrina and Rita on its service territory.

Trucksess said Saia’s revenue increased 23% to $205 million in the first quarter vs. the same period in 2005, with LTL tonnage increasing 15%, yield growing 6%, and operating income jumping 39%.

Those results helped boost SCS’ overall revenue by 13% to $287 million, though net income slid to $2.4 million compared to $4 million in the first quarter of 2005.

Sponsored Recommendations

Heavy-Duty Maintenance Checklist

A maintenance checklist can help ensure you hit everything necessary during an inspection. Check out our free downloadable checklist to help streamline your repairs.

Five Ways a Little Data Can Save Your Company Millions

While most trucking and logistics companies rely on cellular to keep their work fleet connected, satellite has the ability to connect anywhere and through small data transmission...

Fleet Case Study: 15% YOY Growth for ITDS

Learn how this small trucking company scaled significantly and maintained outstanding customer service without adding additional people. Sylectus TMS can automate operations and...

Unlocking Fleet Safety & Efficiency: The Managed Service Advantage

Want to boost your fleet's safety and efficiency? Tune in now to discover the power of Managed Services in optimizing your safety program, streamlining operations, and making ...

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!