A 20.9% increase in shipments in the first quarter this year versus the same period in 2010 fueled a 33% jump in revenues and 180.1% spike in net income for regional LTL carrier Old Dominion Freight Lines. Those results were among the highest comparative quarterly increases achieved by the company since it went public in 1991, according to David Congdon, Old Dominion’s president and CEO.
The company said net income topped $21.6 million and revenues reached $422.7 million in the first quarter, compared to $7 million and $317.8 million, respectively during the first quarter of 2010.
“While our weight per shipment declined by 0.6%, our tonnage increased 20.3%, which was our third consecutive quarter of tonnage growth in excess of 20% over the prior-year comparative quarter,” noted Congdon in the carrier’s earnings statement. “Revenue per hundredweight increased 11.1% over the prior-year quarter and reflected both improvements in our base pricing and an increase in our fuel surcharges.”
Excluding fuel surcharges, revenue per hundredweight increased 6.4% for the first quarter compared with the first quarter in 2010, he noted, with Old Dominion’s revenue per hundredweight metrics also benefiting from a 0.7% increase in average length of haul and the 0.6% decline in weight per shipment.
However measures of productivity for the LTL carrier were mixed during the first quarter this year compared to the same period in 2010, Congdon said, with incremental improvements in pickup and delivery shipments per hour and linehaul laden load averages offset by declines in P&D stops per hour and platform pounds per hour.
“We will continue to focus on organic growth opportunities to increase density within our service center network, thereby improving revenue yield,” he said. “We also plan to further enhance our products and services to satisfy even more of our customers’ needs. In an industry characterized by increasing consolidation pressure, we also have the experience and resources to act on appropriate strategic opportunities.”