Hub hit by declining revenue
Hub Group Inc. said third quarter net income was $9.8 million, 42 percent lower than in the same period the prior year.
Revenue for the quarter ended Sept. 30 was $389 million, down 24 percent compared to the third quarter of 2008.
The company said intermodal revenue decreased 27 percent to $270 million, attributable to 9 percent lower volume, 12 percent lower fuel, and a 6 percent decrease for price and mix. Truck brokerage revenue decreased 27 percent to $74 million in the quarter, while third quarter logistics revenue increased 2 percent to $45 million.
“We think that the third quarter results were reasonable considering the economic environment. During this downturn, we have focused on reducing our costs and believe that the efficiencies we have realized will continue to improve our competitive position as the economy recovers,” said David P. Yeager, chairman and chief executive officer.