Old Dominion announces higher 2Q net income, revenue

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Old Dominion Freight Line today, July 24, announced financial results for the second quarter and six months ended June 30:

  • For the second quarter, revenue increased 16.2 percent to $417.8 million from $359.6 million for the second quarter of 2007. Net income increased 6.0 percent to $23.9 million from $22.5 million. Second-quarter results included the final resolution of a customer pricing issue from periods prior to 2007, which resulted in the recognition of $2.0 million in revenue. Old Dominion’s operating ratio was 89.7 percent compared with 88.7 percent.
  • For the six-month period, revenue increased 15.7 percent to $786.0 million from $679.6 million for the comparable period in 2007. Net income declined to $34.3 million from $36.1 million. The company’s operating ratio was 91.9 percent compared with 90.3 percent.
  • “Old Dominion continued to perform well in the second quarter of 2008 relative to a period in which rising fuel prices and an uncertain economic environment created challenging industry conditions,” said Earl Congdon, executive chairman of the Thomasville, N.C.-based less-than-truckload carrier. “Our revenue growth for the quarter primarily resulted from a 10.2 percent increase in tonnage, which slightly exceeded our expectations at the beginning of the quarter. The tonnage growth was a result of a 7.1 percent increase in weight per shipment and a 2.8 percent increase in the number of shipments.”

    Congdon said Old Dominion also benefited from operational efficiencies in the second quarter, as productivity improvements were realized in the company’s linehaul, pickup-and-delivery and dock operations. “The substantial growth in second-quarter tonnage further validates our unceasing efforts to enhance the value proposition we provide our customers,” he said. “Due to the successful execution of our business strategies and experience of our management team, we believe Old Dominion is positioned to continue gaining market share and to outperform the LTL industry averages for revenue and tonnage growth and operating ratio. Despite our achievements for the first half of 2008, we continue to be cautious with our guidance for the remainder of 2008 because of the challenging industry conditions that persist.”

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