Old Dominion Freight Line Provides Update for Fourth Quarter 2024
03 Diciembre 2024 - 4:05PM
Business Wire
Old Dominion Freight Line, Inc. (Nasdaq: ODFL) today reported
certain less-than-truckload (“LTL”) operating metrics for November
2024. Revenue per day decreased 8.2% as compared to November 2023
due to an 8.0% decrease in LTL tons per day and a slight decrease
in LTL revenue per hundredweight. The decrease in LTL tons per day
was attributable to a 6.8% decrease in LTL shipments per day and a
1.2% decrease in LTL weight per shipment. For the quarter-to-date
period, LTL revenue per hundredweight decreased 1.2% as compared to
the same period last year and LTL revenue per hundredweight,
excluding fuel surcharges, increased 3.7% as compared to the same
period last year.
Marty Freeman, President and Chief Executive Officer of Old
Dominion, commented, “Our revenue results for November reflect the
continued softness in the domestic economy as well as the impact of
lower fuel surcharge revenue on our yields. While our LTL volumes
declined on a year-over-year basis in November, the improvement in
our revenue per hundredweight, excluding fuel surcharges,
demonstrates our continued commitment to yield management. We have
achieved consistent, cost-based increases in our yield metrics,
excluding fuel surcharges, by remaining committed to providing our
customers with superior service at a fair price. As we continue to
deliver on these core elements of our long-term strategic plan, we
remain confident in our ability to win market share and increase
shareholder value over the long term.”
Forward-looking statements in this news release are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. We caution the reader that such
forward-looking statements involve risks and uncertainties that
could cause actual events and results to be materially different
from those expressed or implied herein, including, but not limited
to, the following: (1) the challenges associated with executing our
growth strategy, and developing, marketing and consistently
delivering high-quality services that meet customer expectations;
(2) changes in our relationships with significant customers; (3)
our exposure to claims related to cargo loss and damage, property
damage, personal injury, workers’ compensation and healthcare,
increased self-insured retention or deductible levels or premiums
for excess coverage, and claims in excess of insured coverage
levels; (4) reductions in the available supply or increases in the
cost of equipment and parts; (5) various economic factors such as
inflationary pressures or downturns in the domestic economy, and
our inability to sufficiently increase our customer rates to offset
the increase in our costs; (6) higher costs for or limited
availability of suitable real estate; (7) the availability and cost
of third-party transportation used to supplement our workforce and
equipment needs; (8) fluctuations in the availability and price of
diesel fuel and our ability to collect fuel surcharges, as well as
the effectiveness of those fuel surcharges in mitigating the impact
of fluctuating prices for diesel fuel and other petroleum-based
products; (9) seasonal trends in the less-than-truckload (“LTL”)
industry, harsh weather conditions and disasters; (10) the
availability and cost of capital for our significant ongoing cash
requirements; (11) decreases in demand for, and the value of, used
equipment; (12) our ability to successfully consummate and
integrate acquisitions; (13) various risks arising from our
international business relationships; (14) the costs and potential
adverse impact of compliance with anti-terrorism measures on our
business; (15) the competitive environment with respect to our
industry, including pricing pressures; (16) our customers’ and
suppliers’ businesses may be impacted by various economic factors
such as recessions, inflation, downturns in the economy, global
uncertainty and instability, changes in international trade
policies, changes in U.S. social, political, and regulatory
conditions or a disruption of financial markets; (17) the negative
impact of any unionization, or the passage of legislation or
regulations that could facilitate unionization, of our employees;
(18) increases in the cost of employee compensation and benefit
packages used to address general labor market challenges and to
attract or retain qualified employees, including drivers and
maintenance technicians; (19) our ability to retain our key
employees and continue to effectively execute our succession plan;
(20) potential costs and liabilities associated with cyber
incidents and other risks with respect to our information
technology systems or those of our third-party service providers,
including system failure, security breach, disruption by malware or
ransomware or other damage; (21) the failure to adapt to new
technologies implemented by our competitors in the LTL and
transportation industry, which could negatively affect our ability
to compete; (22) the failure to keep pace with developments in
technology, any disruption to our technology infrastructure, or
failures of essential services upon which our technology platforms
rely, which could cause us to incur costs or result in a loss of
business; (23) disruption in the operational and technical services
(including software as a service) provided to us by third parties,
which could result in operational delays and/or increased costs;
(24) the Compliance, Safety, Accountability initiative of the
Federal Motor Carrier Safety Administration (“FMCSA”), which could
adversely impact our ability to hire qualified drivers, meet our
growth projections and maintain our customer relationships; (25)
the costs and potential adverse impact of compliance with, or
violations of, current and future rules issued by the Department of
Transportation, the FMCSA and other regulatory agencies; (26) the
costs and potential liabilities related to compliance with, or
violations of, existing or future governmental laws and
regulations, including environmental laws; (27) the effects of
legal, regulatory or market responses to climate change concerns;
(28) emissions-control and fuel efficiency regulations that could
substantially increase operating expenses; (29) expectations
relating to environmental, social and governance considerations and
related reporting obligations; (30) the increase in costs
associated with healthcare and other mandated benefits; (31) the
costs and potential liabilities related to legal proceedings and
claims, governmental inquiries, notices and investigations; (32)
the impact of changes in tax laws, rates, guidance and
interpretations; (33) the concentration of our stock ownership with
the Congdon family; (34) the ability or the failure to declare
future cash dividends; (35) fluctuations in the amount and
frequency of our stock repurchases; (36) volatility in the market
value of our common stock; (37) the impact of certain provisions in
our articles of incorporation, bylaws, and Virginia law that could
discourage, delay or prevent a change in control of us or a change
in our management; and (38) other risks and uncertainties described
in our most recent Annual Report on Form 10-K and other filings
with the SEC. Our forward-looking statements are based upon our
beliefs and assumptions using information available at the time the
statements are made. We caution the reader not to place undue
reliance on our forward-looking statements as (i) these statements
are neither a prediction nor a guarantee of future events or
circumstances and (ii) the assumptions, beliefs, expectations and
projections about future events may differ materially from actual
results. We undertake no obligation to publicly update any
forward-looking statement to reflect developments occurring after
the statement is made, except as otherwise required by law.
Old Dominion Freight Line, Inc. is one of the largest North
American LTL motor carriers and provides regional, inter-regional
and national LTL services through a single integrated, union-free
organization. Our service offerings, which include expedited
transportation, are provided through an expansive network of
service centers located throughout the continental United States.
The Company also maintains strategic alliances with other carriers
to provide LTL services throughout North America. In addition to
its core LTL services, the Company offers a range of value-added
services including container drayage, truckload brokerage and
supply chain consulting.
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Adam N. Satterfield Executive Vice President and Chief Financial
Officer (336) 822-5721
Old Dominion Freight Line (NASDAQ:ODFL)
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