Old Dominion cuts forecast, blames low volumes

Old Dominion cuts forecast, blames low volumes
12/23/08

BOSTON, Dec 23 (Reuters) - U.S. trucking company Old Dominion Freight Line Inc. lowered its profit forecast for the year by about 9 percent on Tuesday, as a slowing economy has meant lower demand for its shipping services.

Old Dominion now expects to report full-year earnings of $1.73 to $1.76 per share, lower than its prior forecast of $1.90 to $1.95. Analysts, on average, had looked for profit of $1.86 per share, according to Reuters Estimates.
The Thomasville, North Carolina-based company said the volume of goods it has shipped in the fourth quarter is running 6 to 7 percent lower than at this time last year.

"The primary cause of our revision in guidance is weakness of tonnage, as well as the continuing pricing environment," said Executive Chairman Earl Congdon, in a statement.
As of Monday's close, Old Dominion shares were up 7.8 percent for the year, at a time when the Dow Jones U.S. trucking index .DJUSTK was down http://www.reuters.com/article/marketsNews/idUSN235300382008122312.6 percent.
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