J.B. Hunt 3Q Earnings Rise 12%; CSX Profit Dips
J.B. Hunt Transport Services Inc. raised third-quarter net income 12% to $115.1 million, or 99 cents per share, as profit margins improved in all operating units.
The company, which ranks No. 3 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers, made the first earnings report for the quarter, which included a drop of less than 1% in revenue to $1.59 billion. In last year’s third quarter, net income was $102.4 million, or 87 cents.
Increased volume and asset productivity “could not offset the decrease in fuel surcharge revenue and tepid customer demand,” the Lowell, Arkansas-based company’s statement said.
Intermodal, the largest revenue and profit unit, raised profit before interest and taxes by less than 1% to $126.1 million as revenue fell 2% to $948.8 million, Shipments rose 3%. Profit was held back by higher driver costs and reduced equipment utilization due to rail service issues.
Results were stronger at the dedicated unit, where profit on that basis rose by more than 30% to $45.1 million, and revenue increased nearly 3% to $370.4 million. New accounts and higher productivity aided the performance.
Brokerage profit before interest and taxes was nearly 40% higher at $11.5 million. Revenue slipped 7% to $172.9 million, but profit margins rose 2.6 percentage points to 15.9%.
Truck profit more than doubled to $11.2 million, helped by higher rates. Revenue rose 2% to $98 million. The truck operating ratio was 88.5.
In the rail sector, CSX Corp. reported first, showing a drop of less than 1% in earnings to $507 million, or 52 cents per share. Revenue fell 9% to $2.94 billion, mostly due to lower coal shipments. Intermodal volume increased 6%, but revenue fell 1%.
