Old Dominion Freight Line increased its profit 83.1 percent to $39.4 million in the second quarter, as revenue rose 30.4 percent from a year ago to $480.3 million.
That set a quarterly revenue record for the less-than-truckload carrier, exceeding its previous $417.8 million high mark in the 2008 second quarter by 15 percent.
ODFL’s operating ratio — operating expenses as a percentage of sales — dropped to 86.5 percent, beating a record 88.3 percent set in the second quarter of 2006.
The Thomasville, N.C., company continued to gain shipments and market share, with shipments increasing 16.8 percent from a year ago and tonnage up 14 percent.
Revenue per shipment increased 11.5 percent, while revenue per hundredweight or yield rose 14.2 percent. Excluding fuel surcharges, yield was up 8.1 percent.
ODFL’s second quarter revenue was 13.6 percent greater than its first quarter sales. Its profit also increased 82.4 percent from $21.6 million in the first quarter.
The LTL carrier’s strong sales performance and profitability is underwriting expansion into drayage, warehousing, brokerage and dedicated carriage.
“We have an excellent opportunity to further increase our market share by expanding our business organically,” said President and CEO David S. Congdon. ODFL will increase density within its network and expand geographically, he said.
In 2011, ODFL will spend $100 million to $120 million on real estate, $145 million to $155 million on rolling stock and $15 million to $20 million on technology.