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Knight, ODFL, Landstar & UPS Report Strong Earnings

April 25, 2013

By Evan Lockridge

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The first quarter earning reporting season continues with Knight Transportation and Old Dominion Freight Line reporting healthy increases in revenue and profit, with Landstar nearly hitting a record and UPS continuing to prove why it’s the biggest trucking operation in the country.

Knight Transportation

Truckload carrier and logistics provider Knight Transportation says total revenue in the first quarter of the year amounted to $235.4 million dollars, up 7.2% from the same time a year ago, while net income moved 5.1% higher to $15.1 million.

In a statement the company said, “During the first quarter of 2013 we continued to grow revenue in each of our businesses. As a result of the sluggish freight environment and a more competitive driver market, miles per tractor were down 1.6% when compared to the same quarter last year. Despite the reduction in utilization, we were able to grow revenue, excluding trucking fuel surcharge, by 8.0% and adjusted operating income by 7.3% when compared to the first quarter of 2012.”

The company also said its average tractor count for the quarter increased year-over-year 2.5% to 4,076 tractors, and declined 2.4% from the fourth quarter of 2012.

You can get more details from Business Wire.

Old Dominion Freight Line

Less-than-truckload provider Old Dominion Freight Line said first quarter revenue was $532.6 million, a 7.1% increase over $497.1 million for the first quarter of 2012. Net income increased 30.4% to $40.6 million from $31.1 million during the same period while its operating ratio was 87.6% for the first quarter of 2013 compared with 89.1% a year ago.

“Old Dominion is off to a strong start in 2013, as we set a new company record for our first-quarter operating ratio and increased our earnings per share by 30.6%," said David S. Congdon, President and Chief Executive Officer of Old Dominion. “The winter weather in the first quarter of 2013 was more severe than we experienced in the first quarter of 2012. Even with these headwinds and a less than robust economic environment, we generated revenue growth for the quarter that consisted of a 5.2% increase in tons per day and a 2.9% increase in revenue per hundredweight, excluding fuel surcharges."

There is a further breakdown on the Old Dominion web site.

Landstar System

Florida based non-asset truckload provider Landstar System, reported revenue for the 2013 first quarter was the second highest first quarter revenue in Landstar history at $628.3 million compared to $649.0 million in the 2012 first quarter. Net income matched the performance from a year earlier at $26.8 million. 

Truck transportation revenue hauled by independent contractors and truck brokerage carriers was $574.7 million, or 91% of revenue, compared to $600.2 million, or 92% of revenue, in the 2012 first quarter.  Revenue hauled by rail, air and ocean cargo carriers was $39.1 million, or 6% of revenue, in the 2013 first quarter compared to $35.1 million, or 5% of revenue, in the 2012 first quarter. 

"Demand for the company's truck services continued to be soft during the first few weeks of April,” said Landstar Chairman, President and CEO Henry Gerkens. "Based on current trends, I anticipate 2013 second quarter revenue to be below revenue for the 2012 second quarter, similar to the shortfall experienced in the 2013 first quarter over the 2012 first quarter."

More details are on the Landstar website.

UPS

UPS reported its first quarter profit increased 7% from a year earlier to $1.04 billion while revenue increased 2.3% to $13.4 billion.

The company says it benefited from a stronger than expected post-holiday season in January. In the U.S. domestic segment, daily package volume grew 4.4% and operating profit improved 9%.

In its supply chain and freight operations revenue increased 0.9% to $2.19 billion. Operating profit was $143 million.

UPS Freight, which includes its truckload and less-than truckload operations, among others, increased shipments per day 3.6%, with tonnage up 5.1% and revenue per hundredweight up 1.7%.

The company also announced the acquisition of Cemelog, a medical logistics company serving Eastern and Central Europe. The transaction is expected to close in June. It says this will add 255,000 square feet of dedicated healthcare distribution space and offer UPS customers expanded access to new patient populations.

Earlier this year, UPS pulled back on a $6.7 billion offer for European package-delivery company TNT Express after European antitrust regulators blocked the deal.

There is more information on the UPS website.

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