Old Dominion Freight Line focuses on cost control and service levels as demand remains below seasonal norms. Earnings per share for Q3 were $1.28, slightly above expectations but lower than last year. Revenue was slightly above estimates but 4% lower y/y. Tonnage fell 9% y/y, offset by a 5% increase in yield.

Tonnage declines worsened in October, down 11.6% y/y. Management notes softness in industrial and housing markets. Despite weak 3PL volumes, demand hasn’t significantly weakened. Yield improvement has helped limit revenue declines. Operating ratio was 74.3%, worse y/y but better sequentially. Cost per shipment up 6.2%.

Old Dominion is forecasting margin deterioration due to tonnage trends. It announced a 4.9% rate increase effective Nov. 3, impacting 25% of revenue. Shares were up 3.8% on Wednesday. The company believes excess capacity positions it well for market share gains in the future.

Read more at Yahoo Finance: Old Dominion leaning on cost controls, yield management amid tonnage declines