Old Dominion says 2Q income up 55%

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Old Dominion Freight Line today, July 27, announced financial results for the second quarter and six months ended June 30. Revenue increased 25.1 percent for the second quarter to $330.8 million from $264.3 million for the second quarter of 2005. Net income was $21.6 million, up 55.3 percent from $13.9 million. Old Dominion’s operating ratio improved to 88.3 percent for the latest quarter from 90.4 percent for the comparable quarter in 2005.

For the first six months of 2006, revenue increased 24.2 percent to $622.4 million from $501.1 million for the first half of 2005. Net income rose 51.5 percent to $34.6 million for the latest six months from $22.8 million for the same period in the previous year. The company’s operating ratio for the first six months of 2006 improved to 90.0 percent from 91.5 percent for the first half of 2005.

“We continued to deliver revenue growth well above average industry growth rates while maintaining focus on margin improvement,” said Earl E. Congdon, chairman and chief executive officer for Thomasville, N.C.-based Old Dominion. “We attribute our second-quarter revenue growth primarily to a 17.6 percent increase in tons compared with the second quarter last year, and an improved pricing environment.”

Geographic expansion also contributed to Old Dominion’s revenue growth for the second quarter, Congdon said. “We opened five new service centers during the quarter in San Jose, California; Fort Myers, Florida; Pendergrass, Georgia; Fargo, North Dakota, which initiated coverage in our 47th state; and Tacoma, Washington,” he said. “We are scheduled to open seven additional service centers in the second half of 2006, and have already opened two of these service centers in Seaford, Delaware, and Shreveport, Louisiana.”