Old Dominion Freight Line reported continued softness in the market with Q3 metrics showing declines in LTL tonnage and shipments.
Operating income was down 10.2% in Q3 compared to the same time frame a year ago, and its operating ratio ticked up to 74.3%, compared to 72.7% YoY, amid rising overhead costs per an earnings release.
“It's been a very disruptive and challenging period over the last three years,” CFO Adam Satterfield said on an earnings call Wednesday.
LTL tonnage per day was down 9%, and LTL shipments decreased by 7.9%.
Meanwhile, October revenue per day was down approximately 6.5% to 7% compared to a year ago with a decrease of 11.6% in LTL tonnage per day, the company said.
Nevertheless, the company is focusing on what it can control, and it announced an approximately 4.9% general rate increase in October for Nov. 3 that will cover about 25% of its customer base, President and CEO Marty Freeman said on the call.
Its Q3 revenue per shipment of $494.17 was a 3.4% increase YoY.
“We wish that the market would have already turned,” Satterfield said, “but we'll have spent $2 billion cumulatively over the last three years, with volumes being down, to expand our network, to continue to keep a fleet replacement cycle and be prepared for future opportunities.”
The carrier scaled back its real estate and equipment spend earlier this year, downgrading an initial approximately $575 million capital expenditure plan to $450 million.
No service centers have been added this year, but over two dozen were added from 2020 through 2024.
