Old Dominion Freight Line generated more third-quarter profits and brought in more revenue than during the same time last year, overcoming rising complaints in the less-than-truckload sector that problems among manufacturers are cutting in sharply to LTL freight volumes.
The Thomasville, North Carolina, carrier said Oct. 29 that it earned $84.4 million, or 99 cents a share, on quarterly revenue of $779.5 million. For the three months ended Sept. 30, 2014, the company earned $77.9 million, or 90 cents, on revenue of $743.6 million.
Quarterly operating ratio improved to 82.1 from 83. OR measures expenses as a percentage of revenue and, like a golf score, lower is better.
“We continued to win market share and produced significant improvement in our operating ratio, despite some softening in the economic environment,” Vice Chairman and CEO David Congdon said the earnings statement.
The carrier’s amount of tons hauled for the quarter increased by 6.6% year-over-year to 2.1 million from 1.95 million. The number of LTL shipments transported rose 11.7% to 2.69 million from 2.41 million.
Yield analysis showed total LTL revenue per hundredweight dropping 1.6% from last year’s quarter, which the company attributed to less fuel surcharge revenue.
The retreat on fuel allowed the company to increase basic freight rates. Revenue per hundredweight before fuel surcharge increased by 5.2% from last year’s quarter.