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Old Dominion Profit Falls 55 Percent

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Old Dominion Profit Falls 55 Percent

LTL carrier pursues capital investment with eye on recovery

With an eye on the coming recovery, Old Dominion Freight Line pumped $50.2 million into infrastructure investments even as the less-than-truckload multi-regional motor carrier’s revenue fell 22 percent and profit plummeted 55 percent in the third quarter.
Net income was $10.5 million, compared with $23.4 million a year earlier. Old Dominion’s operating ratio was 93.8 percent for the third quarter of 2009, compared with 89.8 percent for the third quarter of 2008.
“We believe yields in the industry will not improve until capacity more closely meets demand, which could occur through either a significant improvement in the U.S. economy or through additional industry consolidation. Until such time, we anticipate continued pressure on our yields,” said Earl Congdon, executive chairman of Old Dominion.
Old Dominion Profit Falls 55 Percent | Journal of Commerce


http://www.truckingboards.com/truck...panies-also-had-big-bounce-46.html#post734688


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The OR still pretty impressive in this enviroment,many public companies would have stopped investing in equipment and facilites artifically making the OR even better,hats off to our upper management for resisting that temptation.This is the second or third time I've seen Earl or Dave mention industry consolidation,scary!!Great if you work for the consolidator,life can suck for the consolidated.....
 
 
Mooresville Moose said:
I'm starting to wonder about you buddy.I wish you would let us report our on stuff.We have a moderater.I'm sure you got some bad news on FedEX to report.It's not all gloom and doom over here.93.8 O.R.looks better than a loss to me.
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Mooresville Moose :clap:

I think you are confused.
Old Dominion did not have a loss.
They actually made money,
not as much as one year ago,
but they still did pretty good.


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River17

River17 performs a valuable service on Truckingboards,reporting on the fianancial and buisiness aspects of our industry. I have found him to be exceptionally fair in his postings repoting both good and bad news including stories and results about his own employer.I for one enjoy and appreciate his reporting news about OD good and bad......:thumbsup:
 
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