Earnings Watch: ODFL Earnings Increase Almost 20%, UPS Profit Remains Strong
The mainly less-than-truckload fleet Old Dominion Freight Line Inc. reported its profit rose nearly 20% in the third quarter of the year due in part to a better overall economy and freight rates.
Net income was $102.3 million, or $1.24 per share, compared to $85.6 million, or $1.03 per share, a year earlier. Revenue in the most recent quarter increased 11.5% to $873 million.
Operating income in the third quarter of 2017 improved 19.3% from a year earlier, totaling $163.9 million.
“The strengthening economy supported our third quarter revenue growth, but we also believe that tightening industry capacity and pricing increases accelerated the pace of our revenue growth for September,” said David S. Congdon, vice chairman and CEO.
The company’s revenue grew despite having one less operating day than the third quarter of 2016. The growth was attributable to an 8.6% increase in LTL tonnage per day, as well as a 3.6% increase in LTL revenue per hundredweight. LTL revenue per hundredweight, excluding fuel surcharges, rose 2.4%, despite a 1.8% increase in LTL weight per shipment and a 0.6% decrease in length of haul.
Increases in weight per shipment and decreases in length of haul typically reduce LTL revenue per hundredweight metrics, according to ODFL.
UPS Profit Slips Less Than 1%
At trucking and parcel delivery goliath UPS Inc., third quarter profit dipped just 0.5% to $1.26 billion, or $1.45 per share, compared to $1.46 per share a year earlier.
This happened as total revenue improved 7% from a year earlier to nearly $16 billion. Operating profit was flat at $2 billion.
“UPS produced another solid quarter of financial performance, despite the impact of several natural disasters that slowed regional economic activity and damaged infrastructure,” said David Abney, chairman and CEO. “Our business segments adapted quickly to changing conditions this quarter, taking advantage of market opportunities while minimizing cost …Read the rest of this story
