Old Dominion Freight Line Expects Fourth Quarter Earnings Of $0.28 To $0.32 Per Share Cites Unusually Harsh Winter Weather And Slowing Econony
Source: Old Dominion Freight Line, Inc.
Earl E. Congdon, Chairman and Chief Executive Officer of Old Dominion Freight Line, Inc. today announced that it expects diluted earnings per share for the fourth quarter ended December 31, 2000, to be in a range of $0.28 to $0.32, compared with $0.41 for the fourth quarter of 1999
HIGH POINT, N.C. (Jan. 11, 2001) - Earl E. Congdon, Chairman and Chief Executive Officer of Old Dominion Freight Line, Inc. today announced that it expects diluted earnings per share for the fourth quarter ended December 31, 2000, to be in a range of $0.28 to $0.32, compared with $0.41 for the fourth quarter of 1999. As a result, while the Company continues to anticipate record revenues for all of 2000, it currently expects that diluted earnings per share for the year will be in a range of $1.63 to $1.67 compared with $1.73 for 1999. The Company intends to release fourth quarter results on January 25, 2001.
Mr. Congdon commented, "Our operations during the fourth quarter were substantially affected by unusually harsh winter weather across most of our route system, especially in the northeast and midwest areas that account for approximately 40% of the markets we serve. As is typically the case in periods of severe weather, our costs do not fall proportionately with revenues because of the expense required to maintain the highest levels of service possible in such difficult conditions. As a result, we estimate that the severe weather reduced fourth-quarter revenues by approximately $1.9 million, leading to a negative impact on diluted earnings per share of approximately $0.08. Combined with the first quarter of 2000, we believe unusually poor weather conditions had a negative impact on diluted earnings per share for the year of approximately $0.18.
"Our fourth quarter results also reflect, to a lesser degree, the slowing national economy, the impact of which continues to affect the entire transportation industry. We are responding to this environment by intensifying our marketing focus in our existing service center network to increase our operating leverage, as well as by expanding our initiatives to improve operating efficiencies.
" Forward-looking statements in this news release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forwardlooking statements involve risks and uncertainties that could cause actual events and results to be materially different from those expressed or implied herein, including, but not limited to, the following: (1) changes in the Company's goals, strategies and expectations, which are subject to change at any time at the discretion of the Company; (2) the competitive environment with respect to industry capacity and pricing; (3) various economic factors such as economic recessions and downturns in customers' business cycles and shipping requirements; (4) the availability and cost of fuel and other significant resources; and (5) other risks and uncertainties indicated from time to time in the Company's filings with the Securities and Exchange Commission.
Old Dominion Freight Line, Inc. is an inter-regional and multi-regional motor carrier transporting primarily less-than-truckload shipments of general commodities, such as consumer goods, textiles and capital goods, to a diversified customer base. The Company serves regional lanes in the Southeast, South Central, Northeast, Midwest and West regions of the country. Old Dominion connects these geographic regions with high quality inter-regional service.