Old Dominion sees double-digit 4Q profit gains

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Old Dominion Freight Line recently reported a 21 percent increase in fourth-quarter profits, with net income coming in at $17.8 million on sales of $319.4 million. During the fourth quarter of 2005, the Thomasville, N.C.-based company posted profits of $14.7 million on sales of $285.2 million.

For the year, Old Dominion posted net income of $72.6 million, up 36 percent from the $53.5 million it earned in 2005. Sales totaled $1.3 billion last year compared to $1 billion in 2005.

Earl Congdon Jr., Old Dominion’s chairman and chief executive officer, attributed much of the growth to an increase in business at service centers that had been open at least one year. The company added 28 service centers in 2006, bringing its network to 182.

Despite the strong finish to 2006, Congdon said the company was cautious in establishing its earning guidance for the first quarter 2007 because of a general slowing in the trucking industry and the impact of winter storms on its business.