J.B. Hunt Transport Services sees 2nd-quarter income rise

J.B. Hunt Transport Services sees 2nd-quarter income rise

'''J.B. Hunt Transport Services Inc. said its second-quarter net income rose 2.8 percent to $44.1 million, compared with $10.8 million for the year-earlier quarter.

''''Revenue rose 17 percent to $584 million, from $489 for the comparable period in 1999. Truck and Intermodal business segment revenues each grew 5 percent in the quarter. The company began reporting the units separately, effective Jan. 1. Dedicated Contract Services revenue increased 53 percent while revenues in the non-asset-based Logistics segment grew 37 percent.

''''J.B. Hunt contributed all of its non-asset-based Logistics business to a new joint venture, Transplace.com, which is jointly owned by six of the largest publicly held truckload transportation companies. J.B. Hunt contributed all of its logistics business and all related intangible assets, as well as $5 million in cash in exchange for about 27 percent interest in Transplace.com

''''J.B. Hunt's second-quarter revenues were impacted by higher consolidated revenue levels and truck-only rate increases, excluding fuel surcharges. Intermodal rates were flat compared to 1999. Fuel costs remained historically high, but the company was able to cover the increased costs through fuel surcharges.

''''Operating revenues for the first six months of 2000 increased 15 percent to $1.117 billion. Truck segment revenue was up 9 percent, intermodal revenue grew 1 percent, DCS revenue was up 47 percent and Logistic increased 36 percent. Net earnings for the six months ended June 30 were $16.1 million, compared with $21.4 million for 1999.