Old Dominion 2Q profit doubles; outlook cautious

Less-than-truckload carrier ODFL saw a 13 percent increase in tonnage, or the amount of freight hauled. It’s the first time that metric, which tends to be a gauge of broader economic health, has increased in more than two years.

The Associated Press

7/28/2010

NEW YORK — Old Dominion Freight Line Inc.’s second-quarter net income doubled on rising shipments and heavier loads, but the trucking company said Wednesday it remains “somewhat cautious” about the rest of the year.

The less-than-truckload carrier saw a 13 percent increase in tonnage, or the amount of freight hauled. It’s the first time that metric, which tends to be a gauge of broader economic health, has increased in more than two years.

The Thomasville, N.C., company earned $21.5 million, or 58 cents per share, compared with $10.7 million, or 29 cents per share in the same quarter a year earlier.

Revenue rose 17 percent to $368.3 million.

Revenue and net income easily topped Wall Street expectations.

Analysts polled by Thomson Reuters 46 cents per share on revenue of $359.2 million.

Still, the company cited numerous macroeconomic issues that could negatively impact the rest of the year.

“Although we are seeing considerable strength in revenue and tonnage thus far in July, our outlook remains somewhat cautious for the second half of 2010,” the company said in a statement. “We remain uncertain about the strength and sustainability of the economic recovery as well as the potential impact from regulatory changes affecting, among other issues, healthcare, energy, labor and taxes.”

The company did say it remains well-positioned to capitalize on a sustained economic rebound.

Kevin Jones of The Trucker staff can be reached for comment at kevinj@thetrucker.com.

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