Lower second quarter numbers for motor carriers trickled in yesterday, with one carrier reporting lower profits despite having more business, while the other just managed to squeak out a profit.

Old Dominion Freight Line, High Point, N.C., announced revenue in the second quarter of the year rose 7% to a record $128.6 million from $120.14 million for the second quarter of 2000. Net income for the quarter was $3.10 million, compared with $4.58 million for the second quarter last year. The company's operating ratio was 95.3% for the latest quarter compared with 92.8% for the second quarter of 2000.
"The weakness in the national economy continued to have a negative impact on Old Dominion's financial results for the second quarter, consistent with softer business levels throughout the transportation industry," said Earl E. Congdon, Chairman and CEO. He noed that record revenue from operations for the second quarter was primarily due to the acquisition of Carter & Sons Freightways in early February 2001 and to expansion to full-state coverage in 23 states over the past 18 months.
Congdon also said despite of the impact of the current economy, they believe there is potential for long-term growth in the less-than-truckload segment of the industry. He says the company anticipates that the current difficulties in the industry will lead to further industry consolidation, which he says would benefit Old Dominion's growth prospects.
Also on Thursday, the nation’s largest publicly owned temperature-controlled carrier of perishable goods reported its financial numbers. Frozen Food Express, Dallas, Texas, reported net income of $128,000 for the second quarter of the year on revenue of $99.3 million, compared to net income of $753,000 on revenue of $100.0 million for the 2000 second quarter.
Excluding fuel surcharges billed to customers, FFE's freight revenue increased by only 3.3% as compared to the second quarter of 2000, but non-freight revenue fell by $4.3 million, or 22.8%.
"Our performance, like that of our industry, reflects the nation's slowing economy," said Stoney M. Stubbs Jr., president and CEO. "Demand for trucking services softens with the economy, which puts pressure on freight rates. Meanwhile, many of our costs, especially fuel and driver wages, have increased."
Industry-wide softness in the demand for trucking services also has impacted the demand for trucking equipment. "Our non-freight segment sells trailers and refrigeration equipment. The market for those assets has softened, resulting in less revenue," he said.