ODFL Income Up on Extended Equipment Life
Old Dominion Freight Line said income and revenue were up during the first quarter 2010, the result of a reduction in depreciation expense as the useful life of the carrier's equipment was extended

ODFL extended the useful life of its tractors from seven to nine years and from 12 to 15 years for trailers. (Photo by ODFL)
Old Dominion Freight Line said income and revenue were up during the first quarter 2010, the result of a reduction in depreciation expense as the useful life of the carrier's equipment was extended.
The less-than-truckload carrier posted net income of $7.7 million, or 21 cents a share, up from $4 million, or 11 cents a share, for the year-ago quarter. Revenue for the quarter was $317.8 million, an increase of 7.7 percent from $295.1 million for the first quarter of 2009.
According to the company, the improvements were due to changes in the estimated useful lives and salvage values of its tractor and trailer fleet. The estimated useful life for most of the company's tractors was extended to nine years from seven years, and the estimated useful life for most of its trailers was extended to 15 years from 12 years. The change sent income up about $1.3 million. The company expects an increase in net income in 2010 of approximately $7.6 million resulting from these changes.
"Our tonnage increased 5.8 percent, our revenue increased 7.7 percent and our net income increased 93.8 percent in comparison to the first quarter of 2009," said Earl Congdon, executive chairman of Old Dominion. "These results demonstrate the continued effectiveness of the strategies that guided us through the recession, and we believe these same strategies will drive our future profitable growth.
"The pricing environment remains very competitive in our industry; however, we have been encouraged by recent trends that suggest the overall pricing environment may improve this year."
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