The trucking company and third party logistics provider reported net earnings of $103.4 million in second quarter 2015, compared with $93.4 million in second quarter 2014.
J.B. Hunt Transport Services, Inc. increased net income 10.7 percent to $103.4 million in the second quarter of 2015, compared with $93.4 million in net earnings during the second quarter of 2014, according to the company’s most recent financial statements.
The trucking company and third party logistics provider increased diluted earnings per share from $0.79 per diluted share to $0.88 per share in Q2 2015.
Overall revenues at J.B. Hunt, however, fell 0.5 percent to $1.54 billion for the quarter, despite customer rate increases across all business units, 2 percent volume growth in its intermodal segment, a 6 percent increase in revenue producing trucks in the company’s Dedicated Contract Services, and 12 percent load growth in its Integrated Capacity Solutions unit.
The company attributed the decline to a decrease in fuel surcharge revenue, slowing demand and lower equipment utilization in its trucking segment. Excluding fuel surcharges, total operating revenue for the quarter increased 7 percent compare with the second quarter of 2014, the company noted.
J.B. Hunt’s Intermodal segment (JBI) reported $118.6 million in operating income on $905 million in revenues for the quarter, a 3 percent decrease from the previous year. Volumes in the JBI unit grew 2 percent compared with Q2 2014, as “lingering effects of disruptive shipping patterns due to the west coast port issues, slow rail service recovery and a softer consumer driven freight demand all contributed to slower load volume growth,” the company said.
Operating income for J.B. Hunt’s Dedicated Contract Services unit (DCS) jumped 34 percent to $40.6 million on a 5-percent increase in revenues to $367 million.
The company’s Integrated Capacity Solutions (ICS) reported a 21-percent drop in operating income to $4.9 million despite revenues for the unit increasing 0.6 percent to $174 million. ICS volumes increased 12 percent, but revenue per load fell decreased 10 percent compared to second quarter 2014, due primarily to lower fuel prices and less transactional customer demand.
JBT, J.B. Hunt’s trucking segment, saw revenues fall 3.5 percent to $98 million, but increased operating income 3 percent to $9.7 million for the quarter. Excluding fuel surcharges, JBT increased revenues 2 percent compared with Q2 2014 thanks to core rate hikes, increased truck count, lower equipment maintenance costs and improved fuel economy, according to the company.
J.B. Hunt increases net income 11% in Q2 2015
