Old Dominion, Allied Report 3rd Quarter Financials
Two carriers release third quarter financial results Thursday, with one reporting record business levels
Two carriers release third quarter financial results Thursday, with one reporting record business levels.
At Old Dominion Freight Line, revenue for the third quarter reached a record of $129 million, up 5.4% from $122.4 million for the third quarter of 2000. Net income for the third quarter was $3.7 million, compared with $4.3 million for the same quarter in 2000.
"In a challenging economic environment, compounded by the impact of the September 11th terrorist attacks, Old Dominion achieved record revenue from operations for the third quarter and remained solidly profitable," said Earl E. Congdon, chairman and CEO.
"The size of our average LTL shipment in terms of weight declined 1.3% for the quarter, which we believe is indicative of the fragile economic environment. However, our revenue growth for the quarter was achieved by a 6.5% increase in LTL shipments, a 2.9% increase in LTL revenue per hundredweight plus our asset acquisition of Carter & Son's Freightways in February 2001."
While business levels have improved from the immediate aftermath of the terrorist attacks, Congdon notes, the strength of the national economy remains uncertain for the remainder of the year. In addition to keeping costs down, he says, the company will continue to reduce capital expenditures and will look at opportunities to capture market share through industry consolidation.
Allied Holdings revenues for the third quarter of 2001 were $204 million, compared to $236.3 million for the third quarter of 2000, a decline of 14%.
The company reported a net loss of $12.6 million during the third quarter of 2001, versus a net loss of $4.6 million during the third quarter last year.
The results for the third quarter of 2001 include an after-tax charge of $1.2 million for workforce reduction expenses related to its previously announced downsizing efforts.
Unanticipated cuts in new vehicle production by auto manufacturers led to lower vehicle delivery volumes and a decline in revenues and earnings during the third quarter. The Sept. 11 terrorist attacks caused a significant drop in new vehicle production. The company estimates its vehicle deliveries were reduced by approximately 85,000 units during September following the terrorist acts, which reduced net earnings by approximately $2 million for the month.
"The terrorists acts of September 11 and the lower production of vehicles by the manufacturers impacted the quarter," said Hugh E. Sawyer, Allied's President and CEO. "Nevertheless, we are encouraged by the preliminary signs of progress in our core operations as we execute our turnaround plan. In fact, performance improved each month of the third quarter from an after-tax loss of $7 million in July to an after-tax loss of $2 million in September on lower than expected volumes."
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