Trucking Company Reports Revenue Decrease
Old Dominion Freight Line is a well-known freight company that grew from a single-truck operation founded in 1934 to a versatile organization with over 20,000 employees in the present day. However, they’ve recently reported a decrease in revenue from the past year. According to the company, LTL tons per day decreased 1.4 percent from August 2015 to August 2016.
According to company management, this drop can be attributed to a 1.5 percent drop in LTL shipments per day, as well as a 0.1 percent increase in LTL weight per shipment. David S. Congdon, Vice Chairman and Chief Executive Officer of Old Dominion said: “The decline in Old Dominion’s LTL tons per day for August reflects an operating environment that continued to be challenging. The pricing environment has remained relatively stable, however, and quarter-to-date LTL revenue per hundredweight, excluding fuel surcharges, increased between 2.0 percent and 2.5 percent compared to August 2015. As a result, our quarter-to-date total revenue per day was slightly below the same period of 2015.”
While the company disclosed a revenue total of $1.463 billion for the first half of 2016, a 0.3 percent increase from the same period last year, six-month net income dropped 4.3 percent since 2015, putting the total at roughly $141.7 million.
There are a number of other factors which could be responsible for these changes, but administrators at the organization are hoping that the decline is only temporary. However, in spite of these changes, shares of Old Dominion Freight Line have exceeded the average 12-month target price of $70.43 according to recent reports.