Old Dominion Freight Line, Inc. has announced that its revenue was a record $494.5 million in the third quarter of this year-- an increase of 24.9% from $396.0 million for the third quarter of 2010. Net income also increased 58.4% to $38.6 million from $24.4 million for the third quarter of last year, and earnings per diluted share rose 52.3% to $0.67 from $0.44 in the third quarter of 2010.
Old Dominion's operating ratio also improved to a record 86.2% for the third quarter, compared to 89.0% for the third quarter of 2010.
For the first nine months of 2011, the company’s revenue increased 29.1% to $1.40 billion from $1.08 billion for the same period in 2010. Net income increased 85.8% to $99.6 million from $53.6 million in the first nine months of 2010. Earnings per diluted share for the year-to-date period of 2011 were $1.75, up 82.3% from $0.96 for the comparable period of 2010. Old Dominion's operating ratio improved to 87.8% from 90.8% for the first nine months of 2010.
"Old Dominion continued to produce substantial profitable growth for the third quarter of 2011, with both our revenue and operating ratio improving to new quarterly records," stated David S. Congdon, president & CEO. "Our revenue growth for the quarter again reflected significant tonnage growth and a favorable pricing environment.”
Tonnage increased 9.6% compared with the third quarter last year, and revenue per hundredweight rose 13.7%, or 7.8% excluding fuel surcharges. “This increase represents the continuation of our yield management process, which includes the impact of a 4.9% general rate increase implemented on September 6, 2011,” Congdon said in a statement. “Our revenue per hundredweight was also favorably impacted by both a 2.2% decrease in weight per shipment and a 0.3% increase in average length of haul.”
Congdon added that greater operating leverage — driven by tonnage growth and disciplined yield management process — was primarily responsible for the improvement in the company’s operating ratio. “Our operating ratio also benefited from improvements in most of our key productivity measures,” he said. “As a result of our improved performance in 2011, we were pleased to reward our employees with another annual wage increase that became effective during the first week of September.”
Old Dominion also announced it has recently opened new service centers in Madison, WI, Altoona, PA, and Canton, OH, and relocated and expanded its service center in Wausau, WI. The company currently has 216 service centers in operation.
"While there are many factors contributing to Old Dominion's exceptional performance, we believe an adherence to our core principles that include providing high-quality service at fair and equitable prices is our fundamental strength,” Congdon said. “By continuously investing in technology that allows us to improve both our delivery standards and the efficiency of our operations, we also provide our customers with an unsurpassed level of transparency into the process of shipping their freight. Our integrated infrastructure provides us with structural competitive advantages, and we continue to make significant investments in capacity to maintain our responsiveness to customer needs.”