Old Dominion Freight Line (ODFL), headquartered in Thomasville, North Carolina, is a multi-regional and inter-regional carrier. Domestically, Old Dominion provides inter-regional and regional less-than-truckload shipping of general commodities, consumer goods and capital goods to a diversified customer base. The company provides direct service to 47 states and the District of Columbia in the Southeast, Central States, Gulf States, Northeast, Midwest and Western regions of the country. Through its Global Division, Old Dominion offers LCL, FCL and Assembly and Distributions services to and from all of North America, Central America, South America and the Far East.
The company recently announced its financial results for the fourth quarter and year ended December 31, 2007. Revenue increased 12.3% to $358.7M from $319.4M for the same quarter previous year. Net income was $15.7M compared with$17.8M. For 2007, the company achieved record revenue of $1.4B, an increase of 9.5% from $1.3B for 2006. Net income, however, decreased to $71.8M.
Earl Congdon, executive chairman of the company stated the company was overall successful in defending and increasing their market share in a highly competitive environment and continued to focus on expense management and productivity gains in the fourth quarter. Yet those efforts were not sufficient to fully offset the weak pricing environment, which led to an increase in the company’s operating ratio by 90 basis points to 90.7%, the second best annual performance the company has achieved in 16 years as a publicly-traded company.
Congdon also stated the company continued to expand their service center network by opening two service centers in Jonesboro, Arkansas and Eugene, Oregon. In addition, the company purchased Bullocks Express Transportation, which operates eight service centers in Arizona, Colorado, New Mexico, Texas and Utah.
Congdon concluded, “We are confident that, for 2008 and beyond, our proven business model can drive additional gains in market share. We will continue building out our service center network, enhancing our products and services, and maintaining our focus on customer service. Although we recognize the central role economic growth plays in any of our long-term expectations, we reaffirm our long-term goal of achieving revenues of $2 billion or more for 2010.”
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