Trucking firm Old Dominion posts higher quarterly profit on improved pricing
Trucking firm Old Dominion posts higher quarterly profit on improved pricing July 29 (Reuters) - Old Dominion Freight Line ODFL.O, one of the largest less-than-truckload firms in the U.S., posted a higher second-quarter profit on Wednesday, helped by improved pricing and growing demand from industrial clients.
The results come at a time when regulatory-driven tightening of capacity is driving up rates and as businesses front-load orders to avoid shortages caused by the U.S.-Israeli war on Iran.
Here are some details:
Old Dominion reported a profit of $1.68 per share for the April-June quarter, up from $1.27 per share a year ago.
Quarterly revenue grew 10.4% to $1.55 billion. Revenue per hundredweight in the LTL segment, a gauge for pricing, rose 15.2%.
However, LTL shipments for the second quarter dropped 5.7%.
Trucking firms have pointed to improved U.S. manufacturing activity through much of the year as a sign of strength in industrial demand. In May, manufacturing activity hit its highest reading in four years.
Old Dominion competes with the likes of XPO XPO.N, Saia SAIA.O and the recently carved-out market leader, FedEx Freight FDXF.N.
(Reporting by Nandan Mandayam in Bengaluru; Editing by Shreya Biswas)
((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))