Old Dominion posts lower 2Q net income

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Old Dominion Freight Line Inc. today, July 22, announced financial results for the second quarter ended June 30. Revenue for the quarter was $316.2 million compared with $417.8 million for the second quarter of 2008. Net income was $10.7 million compared with $23.9 million. Old Dominion’s operating ratio was 93.2 percent versus 89.7 percent.

Revenue for the first six months of 2009 was $611.3 million as compared to $786.0 million for the comparable period of 2008. Net income was $14.7 million as compared to $34.3 million. The company’s operating ratio was 94.8 percent for the latest six-month period compared with 91.9 percent for the first six months last year.

“Old Dominion achieved solid profitability for the second quarter of 2009 despite the continuation of an industrywide decline in tonnage and highly competitive pricing,” said Earl Congdon, executive chairman of the Thomasville, N.C.-based company. “These conditions once again severely tested our fundamental philosophy of providing superior customer service at a fair price.”

Congdon said the decline in second-quarter revenue was attributable to a decline in the company’s tonnage, consistent with the overall less-than-truckload industry, and a reduction in fuel surcharges that resulted from the decrease in the price of diesel fuel. “Tonnage decreased 14.6 percent for the second quarter of 2009 compared to the same quarter of 2008, some of which may have resulted from pricing decisions,” he said. “Despite this decrease, we have maintained our relative market share thus far in 2009.”

Congdon said that as the company enters the second half of the year, it intends to redouble its efforts. “We have little visibility to near-term improvement in industry conditions,” he said. “However, we believe Old Dominion is the most well-positioned company in the LTL industry to manage through the current environment, and we remain confident of our long-term prospects for growth in earnings and shareholder value.”