Old Dominion Freight profit tumbles on fuel costs, pricing

The Associated Press

4/23/2008

THOMASVILLE, N.C. — Trucking company Old Dominion Freight Line Inc. said Tuesday its first-quarter earnings tumbled 23 percent as surging fuel costs, weak pricing and severe weather countered rising revenue.

The company also cut its outlook for the year.

The company earned $10.4 million, or 28 cents per share, compared with $13.6 million, or 36 cents per share, in the year-ago period.

Revenue rose 15 percent to $368.2 million from $319.9 million in the prior-year period.

Analysts expected a profit of 31 cents per share on revenue of $354.6 million, according to a poll by Thomson Financial.

The company said weight per shipment — a key indicator of freight demand — increased 2.6 percent while the number of shipments rose 5.6 percent compared with a year earlier.

These results “were masked, however, by the significant increase in fuel costs for the quarter, a competitive pricing environment and costs associated with severe weather,” the company said.