Old Dominion Freight Line Inc. on Feb. 7 reported strong fourth-quarter and full-year results.
Quarterly revenue was $1.02 billion, a 15.2% increase from $891.1 million in 2017. For the year, total revenue was $4.04 billion compared with $3.3 billion in 2017, a 20% increase.
The less-than-truckload carrier reported fourth-quarter net income dropped to $159.4 million or $1.96 a share, compared with $197.2 million, or $2.40 a share in 2017. The company said net income, while still strong, fell in 2018 because in 2017 it received a nearly $105 million net benefit as a result of the Tax Cuts and Jobs Act of 2017.
Old Dominion ranks No. 11 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.
For 2018, Old Dominion’s net income was $605.6 million or $7.39 a share compared with $463.7 million or $5.63 a share the year before.
“Old Dominion delivered strong financial results for the fourth quarter of 2018, allowing us to complete the year with new company records for annual revenue and profitability,” CEO Greg Gantt said. “We exceeded $1 billion of revenue while maintaining an operating ratio below 80.0 for the third straight quarter and were pleased to exceed $4 billion of annual revenue for the first time in our company’s history.”
Old Dominion’s operating ratio in the fourth quarter fell to 78.7 from 83.9. On an annual basis, it dropped to 79.8 from 82.9.
Operating ratio is a company’s expenses as a percentage of revenue and used to determine efficiency. The lower the ratio, the greater the ability to generate a profit.
“The consistent growth in our revenue throughout the fourth quarter reflected the strength of the domestic economy and our ongoing ability to win market share. We continue to win market share by providing shippers with superior service at a fair price, which included 99% on-time deliveries,” Gantt said. “As we begin 2019, we remain committed to our proven business model that has produced long-term profitable growth throughout many economic cycles.”