Old Dominion Net Income Rises; YRC Worldwide Cuts Loss
Old Dominion Freight Line Inc. improved first-quarter net income 36% to $62.5 million, or 73 cents per share, and YRC Worldwide Inc. cut its loss to $21.6 million, or 70 cents.
The reports from two of the largest less-than-truckload operators followed one day after improved LTL results were announced by Con-way Inc., Saia Inc. and Roadrunner Transportation Systems.
YRC, which ranks No. 5 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers, reported 2% lower revenue of $1.19 million.
YRC Freight’s continued pricing discipline and active freight mix management delivered year-over-year yield improvements of 2.6%,” said CEO James Welch, referring to revenue per 100 pounds of freight. The national freight unit posted operating income of $200,000, reversing a $32.5 million year-earlier period loss.
Profit on that basis at the regional unit of YRC dipped 42% to $4.6 million. Regional tonnage slipped 1.9%, and rates improved 0.8%.
The rising rates and lower tonnage at YRC’s units matched the pattern at Con-way, Saia and Roadrunner.
Conversely, Old Dominion’s results were helped by tonnage growth and modestly improved rates per hundredweight, which climbed 0.4%.
Year-earlier net income totaled $45.9 million, or 53 cents. Revenue climbed 13% to $696.2 million from $620.2 million.
Unlike other fleets that relied on rate increases to improve earnings and counter lower tonnage, Old Dominion, which ranks No. 12, ran 16% more intercity miles.
“The company’s revenue growth for the first quarter of 2015 was largely attributable to an 11.4% increase in LTL tons per day as compared to the same quarter last year,” CEO David Congdon said in a statement. “We are excited about Old Dominion’s opportunities in 2015, and we believe we are better positioned to produce sustainable long-term growth than at any time in our history."
Con-way is No. 4, Roadrunner is No. 21 and Saia ranks No. 25.
