Old Dominion Freight Line Provides Update for Fourth Quarter 2022
December 05 2022 - 7:00AM
Business Wire
Old Dominion Freight Line, Inc. (Nasdaq: ODFL) today reported
certain less-than-truckload (“LTL”) operating metrics for November
2022. Revenue per day increased 7.3% as compared to November 2021
due to an increase in LTL revenue per hundredweight that was
slightly offset by an 8.6% decrease in LTL tons per day. The change
in LTL tons per day was attributable to a 7.3% decrease in LTL
shipments per day and a 1.4% decrease in LTL weight per shipment.
For the quarter-to-date period, LTL revenue per hundredweight and
LTL revenue per hundredweight, excluding fuel surcharges, increased
17.3% and 8.6%, respectively, as compared to the same period last
year.
Greg C. Gantt, President and Chief Executive Officer of Old
Dominion, commented, “Old Dominion’s revenue growth for the first
two months of the fourth quarter reflects the ongoing improvement
in our yield, which more than offset the decrease in volumes. We
believe the year-over-year decrease in volumes is primarily due to
continued softness in the domestic economy, as customer demand for
our superior service has remained consistently strong. Our ability
to provide superior service at a fair price adds value to our
customers’ supply chains while also strengthening our customer
relationships. We remain focused on this fundamental element of our
long-term strategic plan, and we believe the disciplined execution
of our plan will continue to support our ability to win market
share and increase shareholder value.”
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 challenges associated with executing our
growth strategy, and developing, marketing and consistently
delivering high-quality services that meet customer expectations;
(2) various risks related to public health epidemics, pandemics and
similar outbreaks, including the continuing impact of the COVID-19
pandemic; (3) changes in our relationships with significant
customers; (4) our exposure to claims related to cargo loss and
damage, property damage, personal injury, workers’ compensation and
healthcare, increased self-insured retention or deductible levels
or premiums for excess coverage, and claims in excess of insured
coverage levels; (5) the availability and cost of new equipment,
including regulatory changes and supply constraints that could
impact the cost of these assets; (6) the availability and cost of
third-party transportation used to supplement our workforce and
equipment needs; (7) the availability and price of diesel fuel and
our ability to collect fuel surcharges, as well as the
effectiveness of those fuel surcharges in mitigating the impact of
fluctuating prices for diesel fuel and other petroleum-based
products; (8) seasonal trends in the LTL industry, including harsh
weather conditions and disasters; (9) the availability and cost of
capital for our significant ongoing cash requirements; (10)
decreases in demand for, and the value of, used equipment; (11) our
ability to successfully consummate and integrate acquisitions; (12)
the costs and potential liabilities related to our international
business relationships; (13) the costs and potential adverse impact
of compliance with anti-terrorism measures on our business; (14)
the competitive environment with respect to our industry, including
pricing pressures; (15) various economic factors such as
recessions, inflation, downturns in the economy, global uncertainty
and instability, changes in international trade policies, changes
in U.S. social, political, and regulatory conditions or a
disruption of financial markets, which may decrease demand for our
services or increase our costs; (16) the negative impact of any
unionization, or the passage of legislation or regulations that
could facilitate unionization, of our employees; (17) increases in
the cost of employee compensation and benefit packages used to
address general labor market challenges and to attract or retain
qualified employees, including drivers and maintenance technicians;
(18) our ability to retain our key employees and continue to
effectively execute our succession plan; (19) potential costs and
liabilities associated with cyber incidents and other risks with
respect to our information technology systems or those of our
third-party service providers, including system failure, security
breach, disruption by malware or ransomware or other damage; (20)
the failure to adapt to new technologies implemented by our
competitors in the LTL and transportation industry, which could
negatively affect our ability to compete; (21) the failure to keep
pace with developments in technology, any disruption to our
technology infrastructure, or failures of essential services upon
which our technology platforms rely, which could cause us to incur
costs or result in a loss of business; (22) the Compliance, Safety,
Accountability initiative of the Federal Motor Carrier Safety
Administration (“FMCSA”), which could adversely impact our ability
to hire qualified drivers, meet our growth projections and maintain
our customer relationships; (23) the costs and potential adverse
impact of compliance with, or violations of, current and future
rules issued by the Department of Transportation, the FMCSA and
other regulatory agencies; (24) the costs and potential liabilities
related to compliance with, or violations of, existing or future
governmental laws and regulations, including environmental laws;
(25) the effects of legal, regulatory or market responses to
climate change concerns; (26) the increase in costs associated with
healthcare legislation and other mandated benefits; (27) the costs
and potential liabilities related to legal proceedings and claims,
governmental inquiries, notices and investigations; (28) the impact
of changes in tax laws, rates, guidance and interpretations; (29)
the concentration of our stock ownership with the Congdon family;
(30) the ability or the failure to declare future cash dividends;
(31) fluctuations in the amount and frequency of our stock
repurchases; (32) volatility in the market value of our common
stock; (33) the impact of certain provisions in our articles of
incorporation, bylaws, and Virginia law that could discourage,
delay or prevent a change in control of us or a change in our
management; and (34) other risks and uncertainties described in our
most recent Annual Report on Form 10-K and other filings with the
SEC. 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 as (i) 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 one of the largest North
American less-than-truckload (“LTL”) motor carriers and provides
regional, inter-regional and national LTL services through a single
integrated, union-free organization. Our service offerings, which
include expedited transportation, are provided through an expansive
network of service centers located throughout the continental
United States. The Company also maintains strategic alliances with
other carriers to provide LTL services throughout North America. In
addition to its core LTL services, the Company offers a range of
value-added services including container drayage, truckload
brokerage and supply chain consulting.
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version on businesswire.com: https://www.businesswire.com/news/home/20221205005167/en/
Adam N. Satterfield Senior Vice President, Finance and Chief
Financial Officer (336) 822-5721
Old Dominion Freight Line (NASDAQ:ODFL)
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