ODFL raises second quarter growth expectations

Less-than-truckload carrier (LTL) Old Dominion Freight Line (ODFL) said this week it has upped its growth forecast for second quarter growth.

The Thomasville, North Carolina-based carrier with the sector’s lowers operating ratio said is revenue per hundredweight, excluding fuel surcharges, for the second quarter, is now in a projected range of 3.0 percent to 3.5 percent over the second quarter of 2013 and from a previous forecast of 2.0 percent to 2.5 percent.

ODFL also said it expects its LTL tons per day in the second quarter to be in a range of 14.0 percent to 14.5 percent for the second quarter, with the actual increase in tons per day for April at 14.1 percent and May expected to be about 14.5 percent on an annual basis.

“We are pleased to report this increase in our second-quarter expectations for LTL revenue per hundredweight during a period of strong continued growth in LTL tons per day,” said ODFL President and CEO David Congdon in a statement.  “We believe this increase and our performance for the second quarter to-date reflect ongoing growth in our market share, which is being driven by demand for our value proposition of superior service at a fair and equitable price.”

For the first quarter, ODFL’s quarterly revenue of $620.3 was up 15.2 percent, with net income up 13.2 percent to $45.9 million. Its operating ratio of 87.1 percent improved from 87.8 percent from the first quarter of 2013.

This forecast comes at a time when LTL carriers are seeing steady growth following a challenging winter, with things appearing to be taking on a more seasonal pattern.

Morgan Stanley analyst William Greene observed in a research note that LTL tonnage growth has been robust since December and on a quarter-to-date basis average tonnage is up about 8 percent, as per carriers that have provided monthly updates.