ODFL’s net income drops 3.6% in Q1 2016

Less-than-truckload carrier Old Dominion Freight Line also experienced weak revenue growth of 1.6 percent year-over-year for the first quarter of 2016, reflecting an economy that remained sluggish and the impact of a 23.3 percent drop in fuel surcharges.    Old Dominion Freight Line (ODFL), a less-than-truckload carrier based out of Thomasville, N.C., had a net income of $60.3 million for the first quarter of 2016, a 3.6 percent decline from the first quarter of 2015, according to the company’s most recent unaudited financial statements.
   Basic and diluted earnings per share for the quarter totaled 0.72 per share, compared to 0.73 per share for the first quarter of 2015.
   “The combination of the increase in our operating ratio with slower revenue growth for the quarter resulted in the slight decline in earnings per diluted share,” ODFL Vice Chairman and CEO David S. Congdon said.
   Revenues for the quarter totaled $707.7 million, a 1.6 percent year-over-year increase. The small growth reflected an economy that remained sluggish and a 23.3 percent drop in fuel surcharges, Congdon said.
   ODFL posted an operating ratio of 85.9 percent for the quarter, compared to 85.1 percent for the first quarter of 2015.
   “This increase was primarily a result of an increase in salaries, wages and benefits due to a 6.7 percent increase in the average number of full-time employees and increased benefit costs,” Congdon said. “Depreciation was also higher as a result of our long-term investments in capacity.”
   “Our primary service metrics remain strong, with 99 percent on-time delivery and a 0.37 percent cargo claims ratio,” he added.