Old Dominion again sees yields improve as volumes sag

Key Highlights

• The latest result was a slight improvement from October when revenue declined 6.8% y/y (tonnage was down 11.7% but yield was up 5.6%).
• Table: Company reports “Old Dominion’s revenue results for November reflect ongoing softness in the domestic economy, which contributed to a decrease in our volumes,” stated Marty Freeman, president and CEO, in a Tuesday evening news release.
• Manufacturing data released on Monday showed the industrial complex has been in a slump for 35 of the past 37 months.
• The Purchasing Managers’ Index registered a 48.2 reading in the latest month, 50 basis points worse than October.
• (A reading above 50 signals expansion while one below 50 indicates contraction.) The new orders index — an indicator of future activity — fell 200 bps to 47.4.