SG&A Efficiency Analysis: Comparing Howmet Aerospace Inc. and Old Dominion Freight Line, Inc.

SG&A Efficiency: A Tale of Two Companies

In the competitive landscape of aerospace and logistics, Howmet Aerospace Inc. and Old Dominion Freight Line, Inc. present a fascinating study in SG&A efficiency. Over the past decade, Howmet Aerospace has seen a significant reduction in its Selling, General, and Administrative (SG&A) expenses, dropping from 77% of its 2014 levels to just 34% in 2023. This reflects a strategic shift towards leaner operations. In contrast, Old Dominion Freight Line has steadily increased its SG&A expenses, growing by 94% over the same period, indicating a robust expansion strategy.

Key Insights

• Howmet Aerospace Inc.: A dramatic 66% reduction in SG&A expenses from 2014 to 2023.
• Old Dominion Freight Line, Inc.: A consistent rise in SG&A expenses, peaking in 2023.
  This analysis underscores the diverse strategies companies employ to navigate their respective industries.