LTL carrier Old Dominion Freight Line said it earned $7.4 million from the recent sale of 355,000 shares of common stock through the exercise of certain options granted in connection with its common stock offering of more than 3.04 million shares. That gain is in addition to $40.5 million it gained in a stock sale earlier this month.
Old Dominion added that it plans to use the $47.9 million it earned to retire debt and purchase additional service centers, tractors and trailers.
The stock sale proceeds come on the heels of financial success for Richmond, VA-based Old Dominion. For the first six months of 2002, its net income rose 61% to $6.6 million on revenues of $266.8 million, compared to net income of $4.09 million on revenues of $248.8 million for the first six months of 2001.
However, the carrier estimates that its earnings for the year will decline to between $1.98 and $2.08, compared to previous projections of $2.05 to $2.15, largely due to slowing freight demand in the last half of the year.