Old Dominion Freight Line still waiting for market to turn

Old Dominion Freight Line reported a modest improvement in metrics during February but said market conditions “continue to reflect softness in the domestic economy.”

The less-than-truckload carrier saw revenue per day increase 1.2% year over year (y/y) during February, following a 2.7% decline in January. Tonnage was down 3% as a slight increase in shipments was offset by a 3.2% decline in weight per shipment. January saw a 2.3% decline in shipments while shipment weights were 3.2% lower.

January was a tougher-than-normal month for carriers as severe winter storms forced terminal closures, resulting in some shipments getting pushed to February. Old Dominion (NASDAQ: ODFL) also had an easier y/y tonnage comp in February (down 12.4% a year ago) compared to January (down 7.8%).

The carrier continues to see favorable yield results as it remains one of the most price-disciplined operators in the business. Revenue per hundredweight was 3.7% higher y/y for the first two months of the first quarter and 7.1% higher when excluding fuel surcharges.

“The increase in our LTL revenue per hundredweight was supported by a favorable pricing environment and our ongoing ability to deliver superior service at a fair price,” said Marty Freeman, Old Dominion’s president and CEO, in a Tuesday news release.

Source: freightwaves.com