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Mar 31, 2021
Old Dominion Q1 2021 Earnings Report
Old Dominion reported strong profitable growth with double-digit increases in revenue and operating income for Q1 2021.
Key Takeaways
Old Dominion Freight Line reported a 14.1% increase in revenue, driven by an 8.3% increase in LTL tons and a 5.6% increase in LTL revenue per hundredweight. The operating ratio improved to a company record of 76.1%.
Revenue increased by 14.1% due to an increase in LTL tons and LTL revenue per hundredweight.
Operating ratio improved by 530 basis points to 76.1%.
The company added a significant number of new employees during the quarter.
The company believes the domestic economy is getting stronger while industry capacity is generally limited.
Old Dominion
Old Dominion
Old Dominion Revenue by Segment
Revenue by Segment
LTL services Revenue
CapyFin.comOther services Revenue
CapyFin.com Forward Guidance
Old Dominion expects to continue investing in long-term capacity and expanding its workforce to support additional growth.
Positive Outlook
- The company intends to continue to increase its workforce in the second quarter to support the ongoing acceleration in volumes.
- The company remains firmly committed to its strategy of delivering superior service at a fair price.
- The company will continue to invest in long-term capacity to support additional growth.
- The company's team's efforts have created a unique position for them within the LTL industry.
- The company is confident that the continued execution of their strategic plan can produce additional growth in earnings and increase shareholder value.
Challenges Ahead
- Challenges associated with executing the company's growth strategy.
- Risks related to public health epidemics and pandemics.
- Changes in relationships with significant customers.
- Exposure to claims related to cargo loss and damage, property damage, personal injury, workers’ compensation and healthcare.
- The availability and cost of new equipment, including regulatory changes and supply constraints that could impact the cost of these assets.
Revenue & Expenses
Visualization of income flow from segment revenue to net income