Profit revenue

ODFL reports record second quarter earnings and revenue

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Old Dominion Freight Line set records for revenue and profitability in the second quarter of 2022, the company announced on July 27.

The Thomasville, North Carolina-based truck-less hauler posted net income of $376.1 million, or $3.30 per diluted share, for the three months ending June 30. This compared to $269.6 million, $2.31, in the same period a year earlier. Total revenue increased 26.4% to a record $1.67 billion from $1.32 billion.

The results were above Wall Street expectations. Analysts were looking for $3.10 per share and revenue of $1.64 billion, according to Zacks Consensus Estimate.

Old Dominion Freight Line reports for the second quarter of 2022 by Transportation topics on Scribd

ODFL reported that its LTL operations in the second quarter increased by 26.5% to $1.64 billion, compared to $1.3 billion in the 2021 period. Revenue from other services increased by 16% , going from $19.6 million to $22.8 million.

“I am pleased to report that the OD team achieved strong profitable growth during the second quarter, resulting in new revenue and profitability records for the business,” said CEO Greg Gantt on a call with investors. “We achieved these results by continuing to execute on our long-term strategic plan, which has guided us for many years and through many economic cycles.”

Gantt noted that the improvement in revenue was mainly due to the increase in LTL revenue per quintal and in LTL tons per day. LTL revenue per hundredweight increased 22.6% to $30.78 from $25.10 last year. LTL tonnage per day increased by 2.8% to 41,746 from 40,600.

Gantt considers improvements in revenue per hundredweight to reflect the success of a long-term pricing strategy. He also noted that the company remained focused on increasing its yield to offset cost inflation and to support capacity investments.

“The disciplined execution of the business fundamentals that form this plan has underpinned our ability to double our market share over the past 10 years,” he said. “We are confident that continued execution of this plan positions us to gain additional market share over the next 10 years. The foundation of our ability to gain market share is our consistent focus on providing superior service at a fair price.

CEO Greg Gant (Old Dominion Freight Line Inc.)

Gantt noted service on-time performance was 99% in the quarter, while the freight loss ratio improved to 0.1%. He thanked his employees for maintaining an unwavering commitment to delivering value to customers.

“It seems that quality of service is becoming even more important to customers when selecting a carrier, which is why demand for our service has remained strong,” Gantt said. “It’s a trend that began to develop with the economic recovery in the second half of 2020. And it continues today as many shippers are still struggling with supply chain issues. As a result, we believe that our relationships with our customers have grown stronger.

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The report showed that the improvements were also due to increased shipments, revenue per shipment and a better operating ratio. LTL shipments in the quarter increased 2.8% year over year from 3.31 million to 3.4 million. Revenue per shipment increased 22.7% to $484.08 from $394.49 last year. The operating ratio improved to 69.5 from 72.3.

Average weight per shipment remained essentially unchanged, increasing only 0.1% from 1,571 to 1,572 pounds. Average trip length didn’t change much either, increasing 0.4% to 934 miles from 930.

“Our value proposition also includes sufficient capacity to support our customers when they need it most,” Gantt said. “We currently have approximately 15% to 20% excess capacity within our service center network, and we expect to open several new facilities in the second half of this year.

“These new facilities, along with various other expansion projects that we plan to complete, should increase the amount of excess capacity towards our long-term goal of 25%. We remain committed to continuing to expand our service center network, which we believe is important regardless of the short-term macroeconomic outlook. »

Old Dominion Freight Line ranks #9 on Transport Topics’ Top 100 Carriers list of the largest for-hire carriers in North America.

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