Old Dominion Freight Line maintains market share strategy during economic downturns, yielding industry-leading margins. Revenue declined 6% y/y to $1.41 billion in Q2, but yield increased 3.4%. Tonnage fell 9.3%. Management forecasts a 4-4.5% y/y yield increase in Q3. Operating ratio was 74.6%, 270 bps worse y/y.
Cost per shipment up 5.1%, revenue per shipment up 1.2%. Benefits costs increased 210 bps y/y. Company expects margin degradation due to flat revenue. Facing headwinds in expenses, equipment sales losses, and excess capacity costs. High-fixed-cost network to see operating leverage with revenue increase. Earnings per share at $1.27, down y/y. ODFL shares down 8.7% on Wednesday. ArcBest shares down 11.1% after earnings miss.

Read more at Yahoo Finance: Old Dominion not changing course as downturn lingers