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Old Dominion profit falls 4.9pc to US$81.3 million, sales slip 0.9pc

THOMASVILLE, North Carolina's Old Dominion Freight Line second quarter profit declined 4.9 per cent year on year to US$81.3 million, drawn on revenues of $755.4 million, which declined 0.9 per cent.

First half profit fell 4.3 per cent to $148.09 million, drawn on revenues of $1.4 billion, which increased 0.3 per cent year on year, the NaSDAQ-listed company announced.

"Our quarterly revenue was once again negatively impacted by reductions in both fuel surcharges and non-LTL revenue," said Old Dominion CEO David Congdon.

"These factors, combined with a domestic economy that remained sluggish, resulted in our first quarterly year-over-year decline in revenue since the fourth quarter of 2009.

"Excluding fuel surcharges, LTL revenue per hundredweight increased 2.7 per cent during the second quarter as the pricing environment remained stable," he said.

"We have not changed our pricing philosophy or commitment to price discipline, but changes to our weight per shipment and mix of freight continue to impact our yield metrics.

The company repurchased $40 million of its common stock during the second quarter and $84.7 million for the first half of 2016, completing its previously authorised $200 million stock repurchase programme," Mr Congdon said,

This leaves $245.6 million available under its new $250 million stock repurchase programme, which was authorised during the second quarter of 2016.