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.
LINK TO FULL ARTICLE – Old Dominion gearing up for ‘robust’ 2021
“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.
Kenny Chambers
ODFL is the best company I’ve ever worked for, I worked there for 12 yrs before I got disabled and the doctors took me out.
I wish them prosperity and continued growth.
Gene
That’s because they don’t pay overtime until after 60 hours. All others pay overtime after 8 hours or over 40. Look at all the money they are screwing the workers out of. Any trucking company could have low OR if they did that.
Brandon Allen
The best company that I have ever worked for, unfortunately I lost my Job there this year, and in the future I will reapply and hopefully I will be able to Join the team again and be a contributer to the on going success of the company.
Johnny Deskus
Good going old Dominion. Keep up the good work This is why you are one of the best trucking companies in the USA. To ship with and to work for. LTL Freight.CDL Drivers keep your eyes on this company it is a very good COMPANY with top notch people…