Business & Investment

Old Dominion Posts records quarterly profits and revenues

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Old Dominion Freight Line recorded significant profit and revenue growth in the third quarter as it leveraged its tight freight capacity and focused on moving to more profitable accounts.

Net income increased 42% from $ 201.9 million in the year-ago quarter to $ 286.6 million, according to a under-truck carrier based in Thomasville, NC. Diluted earnings per share rose from $ 1.71 to $ 2.47.

Revenue increased 32.3% from $ 1.06 billion in the year-ago quarter to $ 1.4 billion.

Old Dominion President Greg Gantt said in a conference call with industry analysts and investors on October 27 that the financial results included record quarterly earnings and profits.

Gantt

As an indicator of Old Dominion’s business improvement, the operating ratio (the ratio of expenses to revenue) fell to the company record of 72.6 in the third quarter.

“We expect strong demand for transportation services to continue from the fourth quarter of this year to 2022, and as a result, we expect the business-level momentum that began in the third quarter of 2020 to continue,” Gantt said. Stated.

He said the freight and logistics industry has benefited from “continuous strength and limited industry capacity in the macroeconomic environment.”

Gantt believes that Old Dominion’s revenue growth was due to a 15.7% increase in revenue per hand redweight and a 13.7% increase in tons of less than truck load. The company recorded a 19.4% increase in cargo with less than truck load, but also a 4.8% decrease in LTL weight per cargo. This reduction is due to the Old Minion’s move to reduce heavy cargo in order to maintain capacity and improve operational efficiency. This resulted in a 10.1% increase in revenue below truck load per Hundredweight, excluding fuel surcharges.

Adam Satterfield, Chief Financial Officer of Old Dominion, said the fourth quarter began strongly.

He said daily earnings up to most of October were about one-third higher than in the same month a year ago.

In addition, the price outlook looks good as capacity is tight and freight demand remains strong.

“We are confident that we will have a strong pricing environment in the industry next year and we will be able to make a profit,” said Satterfield.

Like other car companies dealing with labor shortages, ODFL continues to employ drivers and other employees. Approximately 1,000 full-time employees were added during the quarter. Motor carriers have increased employment by almost 21% since the third quarter of 2020 and currently have 22,682 employees.

Gantt said he would continue to hire. Old Dominion is increasing employment to complement its operations and reduce its reliance on and purchases from third-party transportation services.

Old Dominion has updated its capital investment guidance, stating that it has spent about $ 565 million this year, $ 40 million less than previously expected. Gantt said the decline was due to lower spending on real estate and service center expansion projects, as delays pushed up some spending next year.

But the company sees the rapid expansion of service centers as a way to increase capacity and gain an edge over its competitors, he said.

“We have a lot of projects in progress, and as we move forward, we have so many projects on the list. We’re looking at places where we think we’re limited in capacity,” says the Gantt chart.

According to Satterfield, Old Dominion’s new service center complements its nationwide network of 250 facilities, making it nearly profitable from the day it opens.

According to Gantt, the company has opened three to four more stores this year and plans to open 10 stores next year.

Old Dominion’s focus is on less than its core truck-loading business, so there’s less disruption from bottlenecks in US ports, he said.

This contributes to the strength of Old Minion’s business, especially in Southern California.

“Currently, we see so much force off the west coast. Obviously, all of these containers are there — the cargo must move inland at some point,” Gantt said. ..

Old Dominion Freight Line Rank No.10 NS Top 100 List of Transport Topics Largest Employment Careers In North America.

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Old Dominion Posts records quarterly profits and revenues

https://www.ttnews.com/articles/old-dominion-posts-record-quarterly-profits-revenue Old Dominion Posts records quarterly profits and revenues

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