Old Dominion reports 1Q earnings up 40 percent

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Old Dominion Freight Line announced record first-quarter revenue from operations of $291.6 million, an increase of 23.2 percent from $236.7 million for the first quarter of 2005. Net income increased 39.4 percent to $13 million from $9.3 million for the first quarter of 2005. Old Dominion’s operating ratio improved to 91.9 percent from 92.7 percent for the first quarter of 2005.

“Our first-quarter operating and financial results are a great start to accomplishing our objectives for 2006,” says Earl E. Congdon, chairman and chief executive officer of Thomasville, N.C.-based Old Dominion. “These results are primarily due to the continued expansion of market share within our existing service center network, even as we continued the steady expansion of our geographic footprint.”

Congdon says Old Dominion’s first-quarter revenue growth — the company’s eighth consecutive quarter of growth in excess of 20 percent — was primarily the result of 20.6 percent growth in LTL tons shipped in a relatively stable pricing environment. “Our tonnage growth consisted of an 11.5 percent increase in LTL shipments for the quarter and an 8.1 percent increase in LTL weight per LTL shipment,” Congdon says. “We attribute much of our growth in revenue and tonnage to our success in providing both regional and inter-regional services through one company to our expanding customer base.”

Congdon says Old Dominion’s first-quarter results continued the company’s long-term record of expanding at a rate significantly higher than the overall trucking industry. “They also support our ability to achieve our objective of at least 20 percent revenue growth for 2006 and over $2 billion in revenue for 2010,” he says. “Our combination of differentiated products, high quality service, non-union work force, experienced management team and solid financial position gives us great confidence in achieving these targets.”