Old Dominion Freight Profit Plummets With Demand

THOMASVILLE, N.C. (AP) — Trucking company Old Dominion Freight Line Inc. said Thursday its first-quarter earnings plunged 62 percent as demand weakened and the company was pressured to cut prices to remain competitive.

Old Dominion earned $4 million, or 11 cents per share, compared with $10.4 million, or 28 cents per share, in the year-ago quarter.

Revenue fell 19.8 percent to $295.1 million, from $368.2 million a year earlier.

Analysts polled by Thomson Reuters, on average, expected a profit of 11 cents per share on revenue of $318.3 million.

The weight of shipments hauled in the quarter fell 12.4 percent from a year ago. Old Dominion said the pressure to cut prices was stiffer than it has ever experienced.

"Industry conditions during the first quarter of 2009 continued to reflect the effects of the recessionary economic environment on freight demand, and pricing pressure was as severe as we have ever experienced," Executive Chairman Earl Congdon said in a statement. "Under these circumstances, however, we maintained our focus on pricing discipline, improved the efficiency of our operations and positioned the company to take advantage of growth opportunities following an economic recovery or meaningful industry consolidation."