Less-than-truckload (LTL) carrier Old Dominion Freight Line (NASDAQ: ODFL) set a new operating record during the third quarter of 2020, posting a 74.5% operating ratio (OR).
On Tuesday the Thomasville, North Carolina-based company reported earnings per share of $1.71, 19 cents better than the consensus estimate and 34 cents better than the year-ago period.
“The strength of our financial results reflects the remarkable recovery in the domestic economy as well as the continued execution of our long-term strategic plan that focuses on providing superior service at a fair price,” said President and CEO Greg Gantt. “Demand for our industry-leading value proposition continues to improve, and we will continue to invest in the three key elements of our capacity – people, equipment and service centers – that will support our ability to win market share over the long term.”
Consolidated revenue increased 1% year-over-year to $1.06 billion as tonnage increased 1.3% and revenue per hundredweight, or yield, dipped 0.6% on lower fuel surcharges. Excluding fuel surcharges, yield increased 2.6%. Tonnage turned positive on a year-over-year comparison in August.
The record OR performance was due to improved pricing and declines in most expense lines, notably compensation and operating supplies.
“Our operating ratio improved to a new quarterly company record of 74.5% for the third quarter of 2020. We achieved this by continuing to improve our yields while also increasing the efficiency of our operations,” continued Gantt.
Old Dominion will hold a conference call to discuss these results at 10 a.m. EDT. Stay tuned to FreightWaves for more coverage on Old Dominion’s earnings report.