J.B. HUNT REPORTS SHARPLY LOWER EARNINGS; LOSS FROM TRANSPLACE.COM

J.B. HUNT REPORTS SHARPLY LOWER EARNINGS; LOSS FROM TRANSPLACE.COM

   J.B. Hunt Transport Services Inc., a U.S. full truckload carrier and logistics company, said net income fell sharply in the first quarter due to a slowing U.S. economy and the spin-off of its logistics business into Transplace.com, an Internet-based transportation firm.

   Profit fell to $1.6 million from $5 million on a 7.3 percent decline in operating revenue of $495 million.

   J.B. Hunt said the decline in operating revenue reflects the spin-off of its logistics revenue to Transplace.com, which was completed in July. J.B. Hunt jointly owns Transplace along with five other publicly traded truckload carriers.

   J.B. Hunt said that sales grew 16 percent in the first quarter, excluding lost Transplace logistics business. J.B. Hunt said it will not book any of the revenue it contributes to Transplace.com but will record 27 percent of the company's net operating results.

   The company's bottom line was also negatively impacted by a decrease in U.S. shipments related to slowing economic activity in the first quarter.