Old Dominion cuts earnings projections

Old Dominion cuts earnings projections Old Dominion Freight Line said that 'due to difficult economic conditions” it was lowering profit projects for 2008. The company now anticipates earnings per diluted share for 2008 to be in the range of $1.73 to $1.76 compared to prior estimate of $1.90 to $1.95 per share.
   'The primary cause of our revision in guidance is weakness in tonnage, as well as the continuing competitive pricing environment,' said Earl Congdon, executive chairman. 'In our third-quarter conference call, we noted that the comparable-period growth rate in tonnage, while positive, had declined each month of the third quarter, a trend that was continuing in early October. The trend accelerated throughout the fourth quarter and has been exacerbated in December by harsh winter weather in many parts of the United States.'
   'As a result, we estimate a 6 percent to 7 percent decrease in comparable-period tonnage for the fourth quarter. In addition, we expect a slight decline in revenue per hundredweight for the fourth quarter of 2008 in comparison to the same quarter of the prior year,' he said.
   He said the company is focusing on 'maintaining labor costs at appropriate levels for our revenue and on managing variable costs.'
   'With continuing positive cash flow from operations, Old Dominion has also maintained its strong financial position. We continue to expect our net debt to total capitalization to be within 30% to 32% at the end of 2008, and we have ample liquidity with approximately $175 million of available borrowing capacity on our revolving credit facility. In spite of our significant caution about short-term operating conditions, our financial strength positions us well for real estate or market share opportunities that may arise in the current environment,' Congdon added.