Old Dominion generated $532.6 million in revenue during the first quarter, a 7.1-percent increase, year over year.
Net income rose by 30.4 percent to $40.6 million for the North Carolina-based less-than-truckload company.
These strong financial results are rooted in operational growth. Old Dominion experienced a 3.5-percent increase in total tonnage to 1,717 tons and a 2.6-percent uptick in total shipments. Revenue per shipment increased by 3.9 percent, year over year. Costs, however, are rising, as the carrier reported a 2.7-percent rise in costs per shipment.
“Old Dominion's strong financial and operating performance in a challenging operating environment reflects the dedication of the entire Old Dominion team and validates our value proposition and business model,” the carrier’s chief executive officer, David Congdon, said in a statement. “We are confident in our proven ability to execute our growth strategies, win additional market share and outperform our industry. As a result, we look forward to the remainder of 2013 and our prospects for creating additional value for our shareholders.”
Analysts at BB&T Capital Markets called this a strong first quarter for Old Dominion, pointing out that the trend has continued so far this month, with 5-percent tonnage growth in April. Analysts also pointed out the carrier’s workforce has been productive so far this year; labor costs per ton only went up by 1.4 percent in the first quarter, signaling effective use of its employees. - Jon Ross