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3Q Earnings for Old Dominion Freight Line Increase by 10.0%

November 2, 2015 By: Trucking News Staff Tags: Fleet Management, News
3Q Earnings for Old Dominion Freight Line Increase by 10.0%

North Carolina-based Old Dominion Freight Line has announced its revenues increased 4.8 percent to $779.5 million for the third quarter of 2015 from $743.6 million for the third quarter of 2014.

Net income rose 8.3 percent to $84.4 million for the third quarter of 2015 from $77.9 million for the third quarter last year, while earnings per diluted share increased 10.0 percent to $0.99 from $0.90 for the same prior-year quarter. Old Dominion’s operating ratio improved 90 basis points to 82.1 percent for the third quarter of 2015 from 83.0 percent for the third quarter of 2014.

Revenue for the first nine months of 2015 was $2.24 billion, up 8.3 percent from $2.07 billion for the first nine months of 2014. Net income increased 17.6 percent to $232.5 million for the first nine months of 2015 from $197.6 million for the comparable period in 2014, while earnings per diluted share rose 18.3 percent to $2.71 from $2.29 last year. Old Dominion’s operating ratio was 82.8 percent for the first nine months of 2015, a 130 basis-point improvement over the 84.1 percent for the first nine months of 2014.

“We are pleased with Old Dominion’s performance for the third quarter,” said David S. Congdon, vice chairman and CEO of Old Dominion. “We continued to win market share and produced significant improvement in our operating ratio, despite some softening in the economic environment.

“Our revenue growth for the quarter included a 6.6% increase in LTL tons that was partially offset by a 1.6 percent decrease in LTL revenue per hundredweight. This decrease in yield reflects the significant year-over-year decline in fuel surcharges, as we believe the pricing environment remained stable during the quarter. LTL revenue per hundredweight, excluding fuel surcharges, increased 5.2 percent for the third quarter of 2015 compared with the third quarter of 2014. LTL shipments continued to increase at a double-digit pace for the seventh consecutive quarter — up 11.7 percent for the third quarter — while LTL weight per shipment declined 4.6 percent.

“Consistent with our long-term strategy of investing in the capacity and capabilities of our service center network, equipment and technology, our capital expenditures for the third quarter were $130.8 million and totaled $362.0 million for the first nine months of 2015,” Congdon said. “For full-year 2015, we expect capital expenditures to total approximately $451 million, including planned expenditures of $139 million for real estate and service center expansion projects, $278 million for tractors, trailers and other equipment and $34 million for technology and other assets.”