Old Dominion Freight Line Provides Update for Second-Quarter 2016
June 01 2016 - 4:05PM
Business Wire
Old Dominion Freight Line, Inc. (NASDAQ: ODFL) today reported
certain less-than-truckload (“LTL”) operating metrics for May 2016.
LTL shipments per day increased 0.2% as compared to May 2015. LTL
tons per day decreased 1.0% as compared to May 2015 due to a 1.3%
decrease in LTL weight per shipment.
David S. Congdon, Vice Chairman and Chief Executive Officer of
Old Dominion, commented, “Old Dominion’s results for May continue
to reflect a challenging business environment with ongoing softness
in the U.S. economy. While our LTL tons per day decreased on a
year-over-year basis, we are encouraged by the growth in LTL
revenue per day that progressed throughout May. In addition, the
pricing environment has continued to be relatively stable and our
quarter-to-date LTL revenue per hundredweight, excluding fuel
surcharges, increased by approximately 3%. We will continue to
focus on delivering superior service at a fair price and believe
these fundamentals will produce long-term growth for our
company.”
Forward-looking statements in this news release are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. We caution the reader that such
forward-looking statements involve risks and uncertainties that
could cause actual events and results to be materially different
from those expressed or implied herein, including, but not limited
to, the following: (1) the competitive environment with respect to
industry capacity and pricing, including the use of fuel
surcharges, such that our total overall pricing is sufficient to
cover our operating expenses; (2) our ability to collect fuel
surcharges and the effectiveness of those fuel surcharges in
mitigating the impact of fluctuating prices for fuel and other
petroleum-based products; (3) the negative impact of any
unionization, or the passage of legislation or regulations that
could facilitate unionization, of our employees; (4) the challenges
associated with executing our growth strategy, including the
inability to successfully consummate and integrate any
acquisitions; (5) the challenges associated with changes in our
goals and strategies, which are subject to change at any time at
our discretion; (6) various economic factors such as economic
recessions and downturns in customers' business cycles and shipping
requirements; (7) increases in driver compensation or difficulties
attracting and retaining qualified drivers to meet freight demand
or grow our fleet; (8) the costs and potential liabilities related
to compliance with, or violations of, existing or future
governmental laws and regulations, including environmental laws,
engine emissions standards, hours-of-service for our drivers,
driver fitness requirements and new safety standards for drivers
and equipment; (9) our exposure to claims related to cargo loss and
damage, property damage, personal injury, workers' compensation,
group health and group dental, including increased premiums,
adverse loss development, increased self-insured retention levels
and claims in excess of insured coverage levels; (10) cost
increases associated with employee benefits, including healthcare
legislation and regulation; (11) the availability and cost of
capital for our significant ongoing cash requirements; (12) the
availability and cost of new equipment and replacement parts,
including regulatory changes and supply constraints that could
impact the cost of these assets; (13) decreases in demand for, and
the value of, used equipment; (14) the availability and cost of
diesel fuel; (15) the costs and potential liabilities related to
various legal proceedings and claims that have arisen in the
ordinary course of our business, some of which include class-action
allegations; (16) the costs and potential liabilities related to
governmental proceedings; (17) various risks arising from our
international business operations and relationships; (18) the costs
and potential adverse impact of compliance with, or violations of,
current and future rules issued by the Department of
Transportation, the Federal Motor Carrier Safety Administration,
including its Compliance, Safety, Accountability initiative, and
other regulatory agencies; (19) seasonal trends in the
less-than-truckload industry, including harsh weather conditions;
(20) our dependence on key employees and the execution of our
succession planning strategies; (21) the concentration of our stock
ownership with the Congdon family; (22) the costs and potential
adverse impact associated with future changes in accounting
standards or practices; (23) potential costs associated with cyber
incidents and other risks, including system failure, security
breach, disruption by malware or other damage; (24) the impact of
potential disruptions to our service center network or our
information technology systems, including challenges that may
result from system upgrades or enhancements; (25) damage to our
reputation; (26) the costs and potential adverse impact of
compliance with anti-terrorism measures on our business; (27)
dilution to existing shareholders caused by any issuance of
additional equity; and (28) other risks and uncertainties described
in our most recent Annual Report on Form 10-K and other filings
with the Securities and Exchange Commission. Our forward-looking
statements are based upon our beliefs and assumptions using
information available at the time the statements are made. We
caution the reader not to place undue reliance on our
forward-looking statements (i) as these statements are neither a
prediction nor a guarantee of future events or circumstances and
(ii) the assumptions, beliefs, expectations and projections about
future events may differ materially from actual results. We
undertake no obligation to publicly update any forward-looking
statement to reflect developments occurring after the statement is
made, except as otherwise required by law.
Old Dominion Freight Line, Inc. is a leading,
less-than-truckload (“LTL”), union-free motor carrier providing
regional, inter-regional and national LTL services, which include
ground and air expedited transportation and consumer household
pickup and delivery through a single integrated organization. In
addition to its core LTL services, the Company offers a broad range
of value-added services including container drayage, truckload
brokerage, supply chain consulting and warehousing.
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version on businesswire.com: http://www.businesswire.com/news/home/20160601006862/en/
Old Dominion Freight Line, Inc.Adam N. Satterfield,
336-822-5721Senior Vice President, Finance and Chief Financial
Officer
Old Dominion Freight Line (NASDAQ:ODFL)
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