Old Dominion's Q2 net income up 6.5pc to US$174m on 2.6pc hike in revenue
OLD Dominion Freight Line, a less-than-truckload (LTL) carrier based in Thomasville, North Carolina, saw second quarter net income rise 6
OLD Dominion Freight Line, a less-than-truckload (LTL) carrier based in Thomasville, North Carolina, saw second quarter net income rise 6.5 per cent year on year to US$174 million on the back of a revenue hike of 2.6 per cent to $1.07 billion.
Operating ratio, the ratio of revenues to expenses and a key measure of a carrier's efficiency, fell to 77.9 per cent from 78.7 per cent in the second quarter of 2018. Effectively, the company spent 77.9 cents for every $1 in revenue in the quarter.
The revenue gains came from a 9.5 per cent increase in revenue for every 100 pounds of cargo hauled, known in the industry as revenue per hundredweight, and a determinant of the company's profitability, reported New York's FreightWaves.
The higher yields overcame a 6.3 per cent year-on-year decrease in tonnage, a 2.6 per cent fall in shipments and a 3.8 per cent drop in weight per shipment. The company said that it expects shipment weight to trend higher during the second half of 2019.
Capital spending totalled $159 million. The company said its full-year capital expenditures will total $480 million, with $220 million earmarked for real estate and service centre expansion, $165 million for tractors and trailers, and $95 million for information technology and ancillary projects.