Old Dominion Freight Line Provides Update for Fourth Quarter 2024
Old Dominion Freight Line (ODFL) reported a 8.2% decrease in revenue per day for November 2024 compared to November 2023. This decline was driven by an 8.0% decrease in LTL tons per day, resulting from a 6.8% decrease in LTL shipments per day and a 1.2% decrease in LTL weight per shipment. For the quarter-to-date period, LTL revenue per hundredweight decreased 1.2% year-over-year, while LTL revenue per hundredweight excluding fuel surcharges increased 3.7%. The company attributes these results to ongoing softness in the domestic economy and lower fuel surcharge revenue impacting yields.
Old Dominion Freight Line (ODFL) ha riportato un calo dell'8,2% dei ricavi giornalieri per novembre 2024 rispetto a novembre 2023. Questa diminuzione è stata causata da un calo dell'8,0% nei tonnellaggi LTL per giorno, risultante da una diminuzione del 6,8% nelle spedizioni LTL giornaliere e un calo del 1,2% nel peso LTL per spedizione. Per il periodo trimestrale fino ad oggi, i ricavi LTL per centinaio di peso sono diminuiti dell'1,2% rispetto all'anno precedente, mentre i ricavi LTL per centinaio di peso escluse le sovrattasse sui combustibili sono aumentati del 3,7%. L'azienda attribuisce questi risultati a una continua debolezza nell'economia domestica e a un ricavo da sovrattasse sui combustibili più basso che impatta i rendimenti.
Old Dominion Freight Line (ODFL) reportó una disminución del 8.2% en los ingresos diarios para noviembre de 2024 en comparación con noviembre de 2023. Esta caída fue impulsada por una disminución del 8.0% en toneladas LTL por día, resultado de una disminución del 6.8% en envíos LTL por día y una reducción del 1.2% en el peso LTL por envío. Para el período del trimestre hasta la fecha, los ingresos LTL por cada cien libras disminuyeron un 1.2% interanual, mientras que los ingresos LTL por cada cien libras, excluyendo los recargos por combustible, aumentaron un 3.7%. La empresa atribuye estos resultados a la continua debilidad en la economía doméstica y a menores ingresos por los recargos por combustible que afectan los rendimientos.
Old Dominion Freight Line (ODFL)은 2024년 11월이 2023년 11월 대비 일일 수익이 8.2% 감소했다고 보고했습니다. 이 감소는 일일 LTL 톤수 8.0% 감소에 의해 주도되었으며, 이는 일일 LTL 발송량이 6.8% 감소하고 LTL 배송당 무게가 1.2% 감소한 결과입니다. 분기까지의 기간 동안 LTL 백파운드당 수익은 전년 대비 1.2% 감소했으며, 연료 추가 요금 제외 시 LTL 백파운드당 수익은 3.7% 증가했습니다. 회사는 이러한 결과를 국내 경제의 지속적인 약세와 수익에 영향을 미치는 낮은 연료 추가 요금 수입에 기인한다고 보고했습니다.
Old Dominion Freight Line (ODFL) a rapporté une diminution de 8,2 % des revenus journaliers pour novembre 2024 par rapport à novembre 2023. Ce déclin a été provoqué par une diminution de 8,0 % des tonnes LTL par jour, résultant d'une baisse de 6,8 % des expéditions LTL par jour et d'une baisse de 1,2 % du poids LTL par expédition. Pour la période de trimestre à ce jour, les revenus LTL par cent livres ont diminué de 1,2 % d'une année sur l'autre, tandis que les revenus LTL par cent livres hors frais de carburant ont augmenté de 3,7 %. L'entreprise attribue ces résultats à une faiblesse persistante de l'économie nationale et à une baisse des revenus des frais de carburant affectant les rendements.
Old Dominion Freight Line (ODFL) berichtete von einem Rückgang der täglichen Einnahmen um 8,2% für November 2024 im Vergleich zu November 2023. Dieser Rückgang wurde durch einen Rückgang von 8,0% bei LTL-Tonnen pro Tag verursacht, was auf einen Rückgang von 6,8% bei täglichen LTL-Sendungen und einen Rückgang von 1,2% beim LTL-Gewicht pro Sendung zurückzuführen ist. Für den bisher laufenden Quartalszeitraum sanken die LTL-Einnahmen pro hundert Gewicht um 1,2% im Jahresvergleich, während die LTL-Einnahmen pro hundert Gewicht ohne Brennstoffzuschläge um 3,7% stiegen. Das Unternehmen führt diese Ergebnisse auf die anhaltende Schwäche der heimischen Wirtschaft und niedrigere Einnahmen aus Brennstoffzuschlägen zurück, die sich auf die Erträge auswirken.
- LTL revenue per hundredweight excluding fuel surcharges increased 3.7% quarter-to-date
- Revenue per day decreased 8.2% year-over-year
- LTL tons per day decreased 8.0%
- LTL shipments per day decreased 6.8%
- LTL weight per shipment decreased 1.2%
- LTL revenue per hundredweight decreased 1.2% quarter-to-date
Insights
The November performance metrics reveal significant headwinds for Old Dominion Freight Line. The
While the company's base pricing remains resilient, with a
The performance metrics suggest continued cyclical pressures in the LTL industry, though ODFL's strategic focus on yield management should help protect margins during this downturn.
The current operating metrics align with broader industry trends showing softness in freight demand. The sequential decline in shipment volumes indicates that the domestic freight market remains in a correction phase, with no immediate signs of recovery. This suggests ongoing inventory normalization and reduced shipping activity across the supply chain.
The company's ability to maintain positive pricing momentum excluding fuel surcharges is noteworthy, as it indicates strong pricing power despite the challenging demand environment. However, the overall market conditions point to continued pressure on volumes in the near term, which could impact sector-wide performance and market share dynamics among LTL carriers.
Marty Freeman, President and Chief Executive Officer of Old Dominion, commented, “Our revenue results for November reflect the continued softness in the domestic economy as well as the impact of lower fuel surcharge revenue on our yields. While our LTL volumes declined on a year-over-year basis in November, the improvement in our revenue per hundredweight, excluding fuel surcharges, demonstrates our continued commitment to yield management. We have achieved consistent, cost-based increases in our yield metrics, excluding fuel surcharges, by remaining committed to providing our customers with superior service at a fair price. As we continue to deliver on these core elements of our long-term strategic plan, we remain confident in our ability to win market share and increase shareholder value over the long term.”
Forward-looking statements in this news release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We caution the reader that such forward-looking statements involve risks and uncertainties that could cause actual events and results to be materially different from those expressed or implied herein, including, but not limited to, the following: (1) the challenges associated with executing our growth strategy, and developing, marketing and consistently delivering high-quality services that meet customer expectations; (2) changes in our relationships with significant customers; (3) our exposure to claims related to cargo loss and damage, property damage, personal injury, workers’ compensation and healthcare, increased self-insured retention or deductible levels or premiums for excess coverage, and claims in excess of insured coverage levels; (4) reductions in the available supply or increases in the cost of equipment and parts; (5) various economic factors such as inflationary pressures or downturns in the domestic economy, and our inability to sufficiently increase our customer rates to offset the increase in our costs; (6) higher costs for or limited availability of suitable real estate; (7) the availability and cost of third-party transportation used to supplement our workforce and equipment needs; (8) fluctuations in the availability and price of diesel fuel and our ability to collect fuel surcharges, as well as the effectiveness of those fuel surcharges in mitigating the impact of fluctuating prices for diesel fuel and other petroleum-based products; (9) seasonal trends in the less-than-truckload (“LTL”) industry, harsh weather conditions and disasters; (10) the availability and cost of capital for our significant ongoing cash requirements; (11) decreases in demand for, and the value of, used equipment; (12) our ability to successfully consummate and integrate acquisitions; (13) various risks arising from our international business relationships; (14) the costs and potential adverse impact of compliance with anti-terrorism measures on our business; (15) the competitive environment with respect to our industry, including pricing pressures; (16) our customers’ and suppliers’ businesses may be impacted by various economic factors such as recessions, inflation, downturns in the economy, global uncertainty and instability, changes in international trade policies, changes in
Old Dominion Freight Line, Inc. is one of the largest North American LTL motor carriers and provides regional, inter-regional and national LTL services through a single integrated, union-free organization. Our service offerings, which include expedited transportation, are provided through an expansive network of service centers located throughout the continental
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Adam N. Satterfield
Executive Vice President and
Chief Financial Officer
(336) 822-5721
Source: Old Dominion Freight Line, Inc.
FAQ
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