Richmond, VA-based LTL carrier Overnite Transportation has announced that its first quarter net income jumped 51.3% to $11.4 million on 10.4% higher operating revenue of $418 million compared to the first quarter of 2004. The company said this performance was largely due to higher freight volumes from a diversified base of customers.
"Our strategy to improve yield by growing our mix of small- to mid-sized customers faster than that of large customers is continuing to gain strength and has greatly assisted our yield growth in a stable pricing environment," said Leo Suggs, chairman, CEO & president.
"Also, our first quarter revenue growth reflects a 4.3% increase in tons per day coupled with a 4% increase in revenue per shipment, excluding fuel surcharges," he noted.
Suggs added that freight volumes remained strong in April and have "bolstered" the company's outlook for the second quarter. Overnite is now projecting earnings to be between 71 and 76 cents per diluted share, with earnings for the full year to top out at $2.60 to $2.70 per share.