67 WALL STREET, New York - December 20, 2011 - The Wall Street Transcript has just published its Transportation and Logistics Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: FMCSA CSA Regulations - Capacity Constraints Result in Pricing Power - Truckload, LTL, Parcel, Rail and Intermodal - Retail and Industrial Transportation Demand
Companies include: Arkansas Best (ABFS); C.H. Robinson (CHRW); CP Rail (CP); CSX (CSX); Celadon (CGI); Con-way (CNW); and many more.
In the following brief excerpt from the Transportation And Logistics Report, expert analysts discuss the outlook for the sector and for investors.
David S. Congdon was named Chief Executive Officer of Old Dominion Freight Line, Inc. in 2008. Previously, he held the position of President and Chief Operating Officer since May 1997 and has been a Member of the company's board of directors since 1978. Mr. Congdon was born in Richmond, Va., where Old Dominion was founded by his grandparents. During his 35-year tenure in the transportation industry, he has held positions of Dockman, Mechanic, City Driver, Road Driver, Industrial Engineer, Director of Employee Relations, Director of Safety & Personnel, V.P. Maintenance & Equipment, President of Old Dominion Furniture Division, V.P. Linehaul and V.P. Quality Management. Mr. Congdon also is on the board of directors for the North Carolina Trucking Association, the American Trucking Association and the Piedmont Triad Partnership, where he also leads the Piedmont Triad Aerotropolis leadership board. In addition, he serves on the governor's statewide Logistics Task Force. Mr. Congdon has served on the board of Communities in Schools of High Point, N.C., and as the Chairman of leadership giving for the United Way of Greater High Point, NC. He is a graduate of the University of North Carolina at Wilmington, where he received his B.S. in business administration.
TWST: Please give our readers an overview and history of Old Dominion.
Mr. Congdon: Old Dominion was founded in Virginia in 1934 by my grandparents, Earl Congdon Sr. and his wife, Lillian.They started the company with a single truck running between Richmond and Norfolk, Va. In 1950, my grandfather passed away, and my father took over as General Manager when he was just 19 years old. He worked with his mother and his brother to grow and expand the business. His first acquisition was a company in High Point, N.C., which helped to expand the company in the Southeast.I joined Old Dominion in the summer of 1970, and continued to work summers and on the weekends for about eight years.
After graduating college in 1978, I joined the company full time, and I've been President since 1997.While we have acquired more than 20 companies over the years, our organic growth and experienced operating systems have been the foundation of our success. We expect to finish 2011 with revenues approaching $1.9 billion.We have 216 service centers with national coverage through our OD Domestic network, and we have additional services through our OD Expedited, OD Global and OD Technology offerings.
TWST: Looking from a broader perspective, what do you see as the trends right now in the LTL industry and how are they impacting your operations?
Mr. Congdon: The industry bottomed out in terms of total tonnage and shipments in 2009. While it started coming back in 2010, it appears tonnage industrywide remains down 5% to 7% from peak levels in 2008. On the other hand, Old Dominion throughout 2010 and for 2011 is surpassing our previous peak levels. So far this year, we are about 15% ahead of our peak levels in 2008.
TWST: What do you believe ODFL is doing right?
Mr. Congdon: The key is we have adhered to our core business principles that include providing the highest quality of service at a fair and equitable price. That's our fundamental strength and our fundamental value proposition.
TWST: When we last spoke, you said the company works with five-year plans. Would you share with us some other goals for your current five-year plan and the upcoming milestones from that plan?
Mr. Congdon: The overarching financial goal of our five-year plan is to achieve $3 billion in sales by 2015. At the same time, we want to maintain, if not improve, our operating margins. We anticipate continued gains in our OD Domestic market share while growing OD Expedited, OD Global and our new Vault Logistics initiative. We also expect to increase our service center network from the 216 facilities we have today to 250. Lastly, we plan to stick with the core business principles that have served us and our customers so well through the economic cycles that we've navigated over the years.
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