Old Dominion says 1Q net income up 180.1%

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Old Dominion Freight Line Inc. on Wednesday, April 27, said revenue for the first quarter ended March 31 increased 33.0 percent to $422.7 million from $317.8 million for the first quarter of 2010. Net income rose 180.1 percent to $21.6 million from $7.7 million. The company’s operating ratio improved to 91.0 percent from 94.8 percent.

“Old Dominion’s 33.0 percent year-over-year increase in revenue for the first quarter of 2011 was primarily driven by a 20.9 percent increase in shipments, both of which are the highest comparative quarterly increases we have achieved since going public in 1991,” said David Congdon, president and chief executive officer of the Thomasville, N.C.-based less-than-truckload company. “While our weight per shipment declined by 0.6 percent, our tonnage increased 20.3 percent, which was our third consecutive quarter of tonnage growth in excess of 20 percent over the prior-year comparative quarter.”

Congdon said revenue per hundredweight increased 11.1 percent and reflected both improvements in base pricing and an increase in fuel surcharges; excluding fuel surcharges, revenue per hundredweight increased 6.4 percent. “The combination of strong tonnage growth and significantly improved revenue yield produced substantial operating leverage that was primarily accountable for a 380 basis point improvement in our first-quarter operating ratio compared with the first quarter of 2010,” Congdon said. “The impact of this operating leverage was modestly offset by the costs associated with expanding our work force to match our record growth in shipments.”

Congdon said Old Dominion is confident about its continuing growth potential in 2011. “Our consistent market share gains reflect the value of our high-quality integrated and comprehensive services,” he said. “We are also investing in future growth, which should enhance our ability to deliver our proven value proposition of superior service at a fair and equitable price. We will continue to focus on organic growth opportunities to increase density within our service center network, thereby improving revenue yield. We also plan to further enhance our products and services to satisfy even more of our customers’ needs. In an industry characterized by increasing consolidation pressure, we also have the experience and resources to act on appropriate strategic opportunities.”