Boston, MA 04/29/2014 (wallstreetpr) – The trucking and logistics company that posted record quarterly results despite weather challenges expects to spend about $367 million this year on various capital investments. Old Dominion Freight Line (NASDAQ:ODFL) believes it can still realize growth into the future with increased capital investment. Therefore, the company expects to spend $47 million in the current fiscal year in technology acquisitions. The company will put $132 million in real estate and improvement of existing facilities. Also, the company plans to put $188 million in purchase of trailers, tractors and equipment.
Although the company has lined up various capital investments this year that are expected to consume about 367 million, it is good for investors to note that there will be no debt making rounds to fund the capital investments. Instead, the company will fund the projects with its cash.
Old Dominion Freight Line (NASDAQ:ODFL) already stands out among its peers. However, reinvestment will help the company to improve its systems, provide quality services and achieve efficiency. That means that its customers will be happy for the exceptionally quality services while the company will also be able to curb costs and expenses, thus, increasing its profitability.
Financial performance
Old Dominion Freight Line (NASDAQ:ODFL) reported $45.9 million net income, suggesting 13.2 percent increase above the same period a year ago. Revenue in the quarter jumped more than 15.2 percent to $620.3 million. The performance progress so far suggests that the company could easily beat the $2.34 billion revenue that was generated in fiscal 2013.
Executive comment
According to Old Dominion Freight Line (NASDAQ:ODFL) CEO David Congdon, the latest revenue did not only surpass expectations, but also came as the highest in the company’s history. The CEO hailed the Q12014 results, observing that the quarter exceeded expectations despite the weather challenges that took a toll on many of their peers.
The company was also able to win market share in the quarter, as it has been in the recent past, due to its ability to satisfy customers. The company ended the quarter with 99 percent on-time deliveries despite the harsh winter condition. Therefore, customers are more than convinced that if the company registered that level of delivery success, it could do more in a good weather condition.
