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J.B. Hunt revenue rises 20 per cent as operating margin narrows

J.B. Hunt’s third-quarter revenue rose 20 per cent to 3.68 billion dollars, while operating income increased only 2 per cent. Higher fuel, transport, insurance, employee and equipment expenses accompanied a lower operating margin. Rail-and-road intermodal loads grew, but profit declined in dedicated fleet services, leaving the US transport group with sharply different results across its businesses.

Economics & Markets··Morning
A container handler lowers a container toward a truck chassis beside freight rail cars at an intermodal terminal.

Revenue outpaces operating profit

J.B. Hunt Transport Services, a US freight and logistics group, released its third-quarter financial results on October 15. Revenue reached 3.68 billion dollars.[1], [2]

Revenue increased 20 per cent annually, or 13 per cent excluding fuel surcharges. Operating income rose 2 per cent to 247.1 million dollars, while operating margin narrowed from 7.9 per cent to 6.7 per cent. Net income reached 172.4 million dollars and diluted earnings per share were 1.82 dollars. Fuel, purchased transportation, insurance, employee and equipment expenses affected profitability.[1]

Rail-and-road loads increase

Intermodal services, which combine rail and road transport, increased load volumes by 8 per cent. Revenue rose 20 per cent to 1.83 billion dollars and operating income grew 18 per cent to 147.5 million dollars. Eastern-network volumes increased 18 per cent, compared with 1 per cent growth on transcontinental routes.[1]

Dedicated-fleet profit declines

Dedicated fleet services increased revenue 11 per cent to 960 million dollars, but operating income fell 22 per cent to 81.7 million dollars. The group’s debt stood at 1.12 billion dollars, down from 1.60 billion dollars a year earlier. Net capital expenditure for the first nine months fell from 490.9 million dollars to 291.1 million dollars.[1]

References

  1. News sourceJ.B. Hunt Transport ServicesJ.B. Hunt revenue grows as operating margin narrows↩1↩2↩3↩4
  2. News sourceFreightWavesJ.B. Hunt reports third-quarter financial results↩
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