Old Dominion Freight Line, Inc. (NASDAQ: ODFL) today updated its
expectations for growth in tons per day and revenue per hundredweight,
excluding fuel surcharges, for the fourth quarter of 2013 as compared
with the fourth quarter of 2012. The Company expects an increase in tons
per day in a range of 9.5% to 10.0%, as compared with the previous
expected range of 9.0% to 10.0%. Tons per day increased at a rate of
8.5% for October 2013 and 10.3% for November 2013, as compared with the
same months of 2012. The Company also expects its revenue per
hundredweight, excluding fuel surcharges, to increase in a range of 1.5%
to 2.0%, as compared with the previous expected range of 1.5% to 2.5%.
David S. Congdon, President and Chief Executive Officer of Old Dominion,
commented, “Old Dominion has continued to produce solid revenue growth
in the fourth quarter of 2013 through a combination of increased tons
and yield. We believe our growth in October and November was the result
of increased market share while also maintaining our core pricing
philosophy. Our updated guidance for revenue per hundredweight,
excluding fuel surcharges, reflects changes to the mix of our freight
that can lower this metric. We remain committed to providing superior
service at a fair and equitable price and believe this value proposition
should allow us to continue to win market share.”
Forward-looking statements in this news release are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. Investors are cautioned 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
competitive environment with respect to industry capacity and pricing,
including the use of fuel surcharges, such that our total overall
pricing is sufficient to cover our operating expenses; (2) our ability
to collect fuel surcharges and the effectiveness of those fuel
surcharges in mitigating the impact of fluctuating prices for fuel and
other petroleum-based products; (3) the negative impact of any
unionization, or the passage of legislation or regulations that could
facilitate unionization, of our employees; (4) the challenges associated
with executing our growth strategy, including the inability to
successfully consummate and integrate acquisitions, if any; (5) changes
in our goals and strategies, which are subject to change at any time at
our discretion; (6) various economic factors such as economic recessions
and downturns in customers' business cycles and shipping requirements;
(7) increases in driver compensation or difficulties attracting and
retaining qualified drivers to meet freight demand; (8) our exposure to
claims related to cargo loss and damage, property damage, personal
injury, workers' compensation, group health and group dental, including
increased premiums, adverse loss development, increased self-insured
retention levels, and claims in excess of coverage levels; (9) cost
increases associated with employee benefits, including compliance
obligations associated with the affordable care act; (10) the
availability and cost of capital for our significant ongoing cash
requirements; (11) the availability and cost of replacement parts and
new equipment, including regulatory changes and supply constraints that
could impact the cost of these assets; (12) decreases in demand for, and
the value of, used equipment; (13) the availability and cost of diesel
fuel; (14) the costs and potential liabilities related to compliance
with, or violations of, existing or future governmental laws and
regulations, including environmental laws, engine emissions standards,
hours-of-service for our drivers, driver fitness requirements and new
safety standards for drivers and equipment; (15) the costs and potential
liabilities related to litigation and governmental proceedings; (16) the
costs and potential adverse impact of non-compliance with rules issued
by the Federal Motor Carrier Safety Administration; (17) seasonal trends
in the less-than-truckload industry, including the possibility of harsh
weather conditions; (18) our dependence on key employees; (19) the
concentration of our stock ownership with the Congdon family; (20) the
costs and potential adverse impact associated with future changes in
accounting standards or practices; (21) the impact caused by potential
disruptions to our information technology systems or our service center
network; (22) damage to our reputation from the misuse of social media;
(23) dilution to existing shareholders caused by any issuance of
additional equity; and (24) other risks and uncertainties indicated from
time to time in our filings with the Securities and Exchange Commission.
Our forward-looking statements are based upon our beliefs and
assumptions using information available at the time the statements are
made. We caution the reader not to place undue reliance on our
forward-looking statements (i) as these statements are neither a
prediction nor a guarantee of future events or circumstances and (ii)
the assumptions, beliefs, expectations and projections about future
events may differ materially from actual results. We undertake no
obligation to publicly update any forward-looking statement to reflect
developments occurring after the statement is made, except as otherwise
required by law.
Old Dominion Freight Line, Inc. is a leading, less-than-truckload
(“LTL”), union-free motor carrier providing regional, inter-regional and
national LTL service and value-added logistics services from a single
integrated organization. In addition to its core LTL services, the
Company offers its customers a broad range of value-added services
including international freight forwarding, ground and air expedited
transportation, container delivery, truckload brokerage, supply chain
consulting, warehousing and consumer household pickup and delivery.
Copyright Business Wire 2013