Before the report came out, many experts had already been lowering their expectations because of fears about trade problems and a slowing economy.

Saia’s total revenue for the quarter went up a little—about 4.3% compared to last year—but most of that growth came from more shipments per day, thanks to new terminals they opened. However, the amount they earned per hundredweight—what they call “yield”—actually went down by about 6%. When you take out fuel costs, the yield was about 5% lower, mostly because shipments were heavier on average.

The company’s profit margin, called the operating ratio, got worse—rising to 91.1%. That means they kept less of the money they made. This was worse than what they expected, mainly because of higher costs from opening new terminals and tough weather in January.

The cost to move each shipment went up by about 9%, but the money they earned from each shipment only grew by 1.5%. That left them with a big gap—almost 8%—where costs grew faster than revenue. They also spent more on wages and benefits, and had higher depreciation costs. Plus, they ended up paying about $4.5 million more in interest compared to the same time last year, which cut into their profits. They also borrowed more money—about $207 million—to pay for their recent terminal expansions.

Operational and Service Concerns

In addition to these financial struggles, Saia recently announced layoffs of its customer service teams. The company is shifting responsibility for customer interactions to local terminals in an effort to cut costs and improve efficiency. However, this move has raised concerns about the level of service customers can expect going forward, especially since past complaints about poor service have already been an issue.

Overall, Saia is facing a difficult period with declining profits and operational changes that could impact the quality of service they provide in the near future.