We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
Home » Old Dominion clocks another strong quarter; YRC posts quarterly income versus 2014 loss
newsworthy

Old Dominion clocks another strong quarter; YRC posts quarterly income versus 2014 loss

April 30, 2015
DC Velocity Staff
No Comments

Just when it might have seemed that Old Dominion Freight Line Inc. couldn't push the pedal to the metal any harder, it has added another cylinder.

The Thomasville, N.C.-based less-than-truckload (LTL) carrier, considered the gold standard of LTL if not all of trucking, posted $696.2 million in first-quarter revenue, up 12.2 percent from the year-earlier quarter. Net income rose 36.3 percent, to $62.5 million. Daily tonnage rose 11.4 percent year over year, paced by a 13.5-percent increase in LTL shipments offset by a 1.8-percent drop in weight per shipment, Old Dominion said.

Operating ratio, the ratio of operating revenues to expenses and a key measure of a carrier's efficiency, fell to 85.1 percent from 87.1 percent in the 2014 quarter, meaning Old Dominion spent 85 cents for every $1 in revenue. The 2015 ratio was a first-quarter record for the company, and came despite periods of bad weather and higher costs related to a moderate drop in productivity, it said.

Revenue per hundredweight, excluding the impact of fuel surcharges, rose 6.2 percent year over year, reflecting a firm pricing environment and the impact of reduced shipment weight, Old Dominion said. The increases in yield and tonnage contributed to the record first-quarter operating ratio, the company said.

The lower shipment size and weight in the quarter was due in part to a sluggish U.S. industrial economy. Another contributor was the absence of retailer shipments that would normally ship by truckload but were converted to LTL in the 2014 quarter because of terrible winter weather, the company said.

David S. Congdon, Old Dominion's president and CEO, said the company continued to gain market share in the quarter. Old Dominion's first-quarter shipment and tonnage gains came as other LTL carriers have experienced drops in tonnage and flat shipment counts in the period.

YRC RESULTS

Meanwhile, YRC Worldwide Inc., one of Old Dominion's rivals, today reported first-quarter operating revenue of $1.16 billion, compared to revenue of $1.21 billion in the 2014 quarter. Overland Park, Kan.-based YRC posted first-quarter operating income of $3.7 million, versus an operating loss of $32.4 million. YRC Freight, the company's long-haul unit, reported first-quarter revenue of $737.6 million, a $19.2 million decline from the $756.8 million in revenue reported in the first quarter of 2014. However, the unit posted operating income in the first quarter, though scant at $200,000. This compared with an operating loss of $32.5 million in the 2014 quarter.

YRC Freight's first-quarter yield, excluding fuel surcharges, rose 8.2 percent year over year. Operating ratio increased more than four percentage points over the year-earlier period, the company said.

James Welch, CEO of YRC Worldwide, attributed the improvement to stronger pricing and a more profitable mix of freight. The drop in tonnage was the result of actions taken to put "yield and profitability improvements" ahead of volume growth, Welch said. For several years, YRC Freight has tried to reduce the disproportionate influence that large national accounts—big shippers that use their volumes as leverage to extract price concessions from the carrier—had over its business.

YRC's three-carrier regional unit—composed of Holland, New Penn, and Reddaway—posted first-quarter revenue of $448.8 million, a $5.3 million drop from the same period in 2014. The unit's operating income declined $3.3 million, to $4.6 million—down from $7.9 million—YRC said.

The unit's 2015 results were affected by having 2.5 fewer workdays versus the 2014 quarter, and by a $7.7 million hit related to liability and workers' compensation claims made during 2014, Welch said. The unit was able to generate yield growth of 5.8 percent year over year, excluding the impact of fuel surcharges, Welch said.

Transportation Trucking Less-than-Truckload
KEYWORDS Old Dominion Freight Line YRC Worldwide
  • Related Articles

    UPS, Old Dominion stand tall as both post strong quarterly results

    Old Dominion posts first drop in quarterly year-over-year revenue since late '09

    Old Dominion posts record results in quarter, says LTL pricing strengthened

Recent Articles by DC Velocity Staff

Freightos completes plan to go public on NASDAQ exchange, raises $80 million

Retailers lose visibility as they outsource last-mile delivery, FarEye says

Warehouse robots drive change in automotive plant

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Big and bulky last-mile delivery segment set for hot growth

  • Outlook 2023: What’s in store for logistics/supply chain?

  • Ports, maritime operators see tide turning as ocean freight tsunami subsides

  • In Person: Steve Beverly of Penske

  • InPerson interview: Rob McKeel of Fortna

Now Playing on DCV-TV

89cfed30 8aac 4284 960d c8c8c1886e16

Have you checked your read rate lately?

DCV-TV 4: Viewer Contributed
No reads. Unaccounted for boxes. Boxes sent to the wrong place. A logistics nightmare! But this nightmare doesn’t have to come true. SICK’s linear line scan camera is what dreams are made of for your logistics operations. And if you’re worried about motion and vibration from conveyor belts...well, there’s no reason...

FEATURED WHITE PAPERS

  • The five best applications for robotic lift trucks in warehouse environments

  • Fulfillment Facility Improved Efficiencies by 4x

  • 3PLs: Complete Orders Faster with Flexible Automation

  • Reusable Packaging for the New Wave of Supply Chain Automation

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing