Oct. 31–Old Dominion Freight Line, a truck company in Thomasville, released financial results for the third quarter, which included an 11.5 percent increase in revenue and a 20.4 percent increase in earnings per share compared to 2016, according to a press release.
The third quarter runs from July 1 to Sept. 30. The release said revenue grew despite having one fewer operating day than 2016’s third quarter. The growth was attributable to an 8.6 percent increase in less than truckload tonnage per day, as well as a 3.6 percent increase in less than truckload revenue per hundredweight.
“The strengthening economy supported our third quarter revenue growth, but we also believe that tightening industry capacity and pricing increases accelerated the pace of our revenue growth for September,” said David Congdon, vice chairman and CEO of Old Dominion. “Due to the upward trend in the industry pricing environment, our ability to deliver superior service at a fair price has become a critical competitive differentiator in the LTL industry.”
The increase in expense for salaries, wages and benefits reflects a 3 percent average wage increase provided to employees in early September 2017, as well as a 4.4 percent increase in the average number of full-time employees for the quarter.
The third quarter also included a 99 percent on-time delivery rate and a cargo claims ratio of 0.2 percent. Congdon said the company intends to hire additional employees throughout the fourth quarter to increase the capacity of their workforce to support anticipated growth.
“The outstanding execution of our long-term business model during the third quarter once again drove Old Dominion’s strong, profitable growth,” Congdon said. “Our team of employees were able to maintain best-in-class service while shipment volumes accelerated, which provided a significant competitive advantage in the LTL industry. We remain committed to investing in our business to support future growth and are encouraged by recent shipment and tonnage trends that have continued thus far during the fourth quarter.”
(c)2017 The Dispatch, Lexington, N.C.
Visit The Dispatch, Lexington, N.C. at www.the-dispatch.com
Distributed by Tribune Content Agency, LLC.