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Old Dominion Reports ‘Best Ever’ Second-quarter Performance

August 3, 2015 By: Trucking News Staff Tags: Fleet Management, News
Old Dominion Reports ‘Best Ever’ Second-quarter Performance

Old Dominion Freight Line Inc. announced revenues increased 8.4 percent to $762.2 million for the second quarter of 2015 from $703.0 million for the same quarter of 2014.

Net income was $85.6 million for the second quarter of 2015, a 15.9 percent increase from $73.8 million for the second quarter last year, while earnings per diluted share were $1, a 16.3 percent increase from $0.86 for the prior-year quarter. Old Dominion’s operating ratio improved 100 basis points to 81.5 percent for the second quarter of 2015 from 82.5 percent for the second quarter of 2014.

For the first six months of 2015, revenue grew 10.2 percent to $1.46 billion from $1.32 billion for the same period in 2014. Net income increased 23.7 percent to $148.1 million for the first half of 2015 from $119.7 million for the first half of 2014, while earnings per diluted share rose 24.5 percent to $1.73 from $1.39. Old Dominion’s operating ratio improved 150 basis points to 83.2 percent for the first six months of 2015 from 84.7 percent for the first six months of 2014.

“We are pleased with Old Dominion’s performance for the second quarter of 2015, which includes our best-ever quarterly results for revenue, operating ratio and earnings per share,” said David S. Congdon, the company’s vice chairman and chief executive officer. “We believe these second-quarter results reflect our continued ability to win market share while also maintaining our focus on yield management. The combination of these factors, as well as continued improvements in our operating efficiency, contributed to the year-over-year improvement in our operating ratio and record profitability.

“Our LTL tons per day for the second quarter of 2015 increased 9.1 percent compared with the second quarter of 2014 due to the 13.4 percent increase in LTL shipments, which was partially offset by the 3.8% decline in LTL weight per shipment. Our LTL revenue per hundredweight for the quarter declined 0.8 percent, due in part to the significant decrease in fuel surcharge revenue between the periods compared.

LTL revenue per hundredweight excluding fuel surcharges, however, increased 5.3 percent during the second quarter of 2015, which reflects a stable pricing environment as well as the positive impact on this metric from the decrease in weight per shipment during the quarter.