Old Dominion operating profit up 13% in 2015

The LTL carrier, lauded by analysts as a top performer, saw revenue and profit growth hit in the fourth quarter by a decline in fuel surcharges.    Less-than-truckload carrier Old Dominion Freight Line said operating income rose 12.9 percent to $498.2 million in 2015, on revenues that grew 6.6 percent to nearly $3 billion compared to the previous year.
   The company, perennially deemed by analysts as one of the top performing LTL carriers, saw only slight growth in revenues and income in the fourth quarter, however, evidence of slow demand. Revenues in the quarter rose 1.9 percent to $734.6 million, while operating income rose 1.4 percent to $113.9 million from the same 2014 period.
   “Old Dominion produced solid financial results for the fourth quarter, despite a soft economic environment and strong comparable results for the fourth quarter of 2014,” said David S. Congdon, vice chairman and chief executive officer. “We believe that we gained market share during the fourth quarter based on increases in both shipments and tonnage, as customers continued to respond favorably to the superior on-time, claims-free service we provide at a fair price.”
   Congdon said Old Dominion’s revenue and yield were both negatively affected by a significant decline in fuel surcharges as compared to the fourth quarter of last year. He noted the pricing environment remained relatively stable during the quarter, however.
   The carrier’s net cash provided by operating activities was $553.9 million for 2015, an increase of 41.4 percent over 2014, and it had $11.5 million in cash and cash equivalents at year end, with a debt-to-total capitalization ratio of 7.4 percent, compared with 9.4 percent at the end of 2014.
   “We enter 2016 with a unique and compelling competitive market position,” Congdon said.