The slowing economy wasn’t a drag on Old Dominion Freight Line in the second quarter.
Revenue jumped 12.8 percent to $541.5 million at the less-than-truckload carrier, while net profit rose 21.5 percent year-over-year to $47.8 million.
Top- and bottom-line growth was fueled by an 8.6 percent increase in LTL shipments and a 9 percent increase in tonnage. Weight per shipment increased 0.4 percent. LTL yield, a measure of pricing, rose 4.1 percent excluding fuel surcharges.
“Increased market share drove additional tonnage and density through our service center network,” said David S. Congdon, president and CEO. Combined with “favorable pricing,” that drove ODFL’s quarterly operating ratio down to 84.7.
“This quarterly operating ratio is the best we have ever produced in our 78-year history, and we believe it is one of the best ever produced by a public less-than-truckload carrier with national coverage,” Congdon said Thursday.
With $1.9 billion in revenue and a $140 million profit in 2011, ODFL is the most consistently profitable company among the largest publicly owned LTL carriers. That profitability is fueling the Thomasville, N.C.-based company’s expansion.
The company raised its base non-contract rates an average 4.9 percent in the third quarter. Most of its LTL competitors raised tariff rates up to 6.9 percent in June and July.
ODFL spent $120.6 million on capital expenditures in the second quarter and $210 million in the first half of 2012. So far in the third quarter, the company has opened service centers in California, Florida and Minnesota, bringing its total to 218.
“We continue to anticipate that our capital expenditures in 2012 will range between $300 million to $350 million,” Congdon said. That includes $195 million to $210 million for the purchase of new tractors, trailers and other equipment.