Record revenue growth of 17.6 percent pushed Old Dominion Freight Line profit up 44.1 percent year-over-year in the first quarter to $31.1 million.
The Thomasville, N.C.-based company saw revenue rise to $497.1 million on a 9.5 percent increase in shipments and higher pricing. The revenue per shipment, a key measure of pricing, in the first quarter expanded 4.7 percent to $266.58 from the same period a year ago.
“While the domestic economy appears to be slightly improving, we attribute our quarter-over-quarter growth in revenue and tonnage primarily to gains in market share,” said President and CEO David Congdon.
He said increased freight hauling helped drive productivity improvements, with the company’s operating ratio falling 2.1 percentage points to a record low of 89.1 percent. ODFL spent $89.4 million in the first quarter on capital projects, which included the relocation and expansion of two service centers.
The company plans to spend $300 million to $350 million this year. Up to $120 million will be spent onreal estate purchase and expansion projects, while up to $210 million will be spent on tractor, trailers and equipment. ODFL expects to spend between $15million and $20 million on technology improvements.