Old Dominion Freight Line states higher 2Q profit, revenue

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Old Dominion Freight Line today, July 26, announced financial results for the second quarter and six months ended June 30. For the second quarter, revenue increased 8.7 percent to $359.6 million from $330.8 million for the second quarter of 2006. Net income increased to $22.5 million for the second quarter of 2007 from $21.6 million from the prior-year quarter.

The results for the second quarter of 2007 include the final resolution of a customer pricing issue from periods prior to 2007 that resulted in the recognition of $2 million in revenue. Old Dominion’s operating ratio was 88.7 percent for the second quarter of 2007 compared with 88.3 percent for the second quarter of 2006.

For the first six months of 2007, revenue was $679.6 million, a 9.2 percent increase from $622.4 million for the comparable period in 2006. Net income for the first half of 2007 was $36.1 million, up from $34.6 million for the first six months of 2006. The company’s operating ratio was 90.3 percent and 90.0 percent for the first half of 2007 and 2006, respectively.

“Old Dominion’s second-quarter results exceeded our original expectations in an industry environment that remained as challenging as we anticipated,” said Earl E. Congdon, chairman and chief executive officer of Thomasville, N.C.-based Old Dominion. “Our management team has done an excellent job of controlling variable costs in this challenging environment, as our operating ratio increased only 40 basis points from the second quarter last year, which was the best operating ratio in the company’s history.”

Congdon said Old Dominion remains cautious in its outlook for the second half of 2007. “Although volume to date supports our expectation that our tonnage will continue to improve in the second half of the year, the market continues to be highly competitive,” he said.