The less-than-truckload carrier Old Dominion Freight Line on Thursday said its second quarter operating income grew 25.7 percent, year-over-year, to $122.7 million.
Net income for the carrier rose 26.8 percent to $73.8 million, on revenue that rose 19.1 percent to $703 million. Year to date, Old Dominion’s revenue is up 17.2 percent to $1.3 billion, while operating income is up 24 percent to $202.7 million. Net income for the first six months is up 21.2 percent to $119.7 million.
"Old Dominion's growth accelerated in the second quarter, driving record results for our quarterly revenue, tonnage and earnings," said Old Dominion President and Chief Executive Officer David Congdon in a statement. He added that the company achieved its best ever quarterly operating ratio in the second quarter.
"We believe our results reflect continued growth in the company's market share as customers respond to the value of our industry-leading service. For both the first and second quarters of 2014, we achieved 99 percent on-time delivery performance and maintained our cargo claims ratio at a historical low of 0.26 percent.”
Congdon attributed the record operating ratio to increases in freight density and yield. LTL tonnage increased 14.9 percent, year-over-year, in the second quarter, driven by a 12-percent increase in LTL shipments and a 2.6-percent increase in weight per shipment.
"Old Dominion's performance in the second quarter continues to validate the strength of our value proposition and our ability to consistently deliver that value to our customers throughout the economic cycle,” Congdon said. “We will continue to invest in our people, infrastructure and technology to drive additional improvement in our service capabilities and market differentiation.”