Old Dominion Freight Line, Inc. (NASDAQ: ODFL) today increased its
outlook for growth in second-quarter less-than-truckload (“LTL”) revenue
per hundredweight, excluding fuel surcharges, to a range of 3.0% to 3.5%
over the prior-year comparable quarter from the previously discussed
range of 2.0% to 2.5%. The Company also affirmed its expectations for
comparable-period growth in its LTL tons per day to be in a range of
14.0% to 14.5% for the second quarter of 2014. The actual increase in
LTL tons per day for April was 14.1% and the increase for May is
expected to be approximately 14.5%, both as compared to the prior-year
comparable period.
David S. Congdon, President and Chief Executive Officer of Old Dominion,
commented, “We are pleased to report this increase in our second-quarter
expectations for LTL revenue per hundredweight during a period of strong
continued growth in LTL tons per day. We believe this increase and our
performance for the second quarter to-date reflect ongoing growth in our
market share, which is being driven by demand for our value proposition
of superior service at a fair and equitable price.”
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
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 any acquisitions; (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) potential
cost increases associated with healthcare legislation; (10) the
availability and cost of capital for our significant ongoing cash
requirements; (11) the availability and cost of new equipment and
replacement parts, 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) various risks arising from our international business
operations and relationships; (17) the costs and potential adverse
impact of non-compliance with rules issued by the Federal Motor Carrier
Safety Administration, including its Compliance, Safety, Accountability
initiative; (18) seasonal trends in the less-than-truckload industry,
including the possibility of harsh weather conditions; (19) our
dependence on key employees; (20) the concentration of our stock
ownership with the Congdon family; (21) the costs and potential adverse
impact associated with future changes in accounting standards or
practices; (22) the impact caused by potential disruptions to our
information technology systems or our service center network; (23)
damage to our reputation from the misuse of social media; (24) dilution
to existing shareholders caused by any issuance of additional equity;
and (25) other risks and uncertainties described in our most recent
Annual Report on Form 10-K and other 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,
union-free motor carrier providing regional, inter-regional and national
LTL service and other 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.
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