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J.B. Hunt Transport Q3 Earnings Fall 19%

[ October 25, 2024   //   Gary G Burrows ]

J.B. Hunt Transport Services Inc. reported third quarter net earnings of US$152.1 million, down early 19 percent from US$187.4 million in the year-earlier period.
Operating revenue slipped 3 percent in the latest quarter to $3.07 billion, which the Lowell, Arkansas-based motor carrier said was primarily driven by:
• Decreases in gross revenue per load in intermodal (5 percent) and intermodal (6 percent).
• Declines in load volume in Integrated Capacity Solutions, or ICS (10 percent) and Dedicated Contract Services, or DCS (5 percent).
• About 6 percent fewer stops in Final Mile Services.
These items were partially offset by intermodal load growth of 5 percent, which included growth in both the transcontinental and eastern networks, and a 3 percent increase in revenue per load in ICS. Current quarter total operating revenue, excluding fuel surcharge revenue, decreased less than 1 percent versus the comparable quarter 2023.
Operating income for the current quarter decreased 7 percent to US$224.1 million, compared to US$241.7 million for the third quarter 2023. Operating income decreased primarily due to lower revenue in all segments excluding JBI, and higher personnel-related, insurance and claims, and equipment-related expense compared to third quarter 2023.
On a consolidated basis, operating income as a percentage of gross revenue decreased year-over-year because of the same expense items, partially offset by lower rail and truck purchased transportation costs as a percentage of gross revenue.
The intermodal segment’s third quarter revenue was flat, while operating income fell 13 percent to US$111.8 million, due to lower yields.
DCS operating income fell 7 percent to US$95.5 million, on US$846 million in revenue.
ICS reported a loss of US$3.3 million compared with a loss of US$9.4 million in the third quarter of 2023, while revenue was off 7 percent to US$278 million.
Final Mile Services operating income was US$12 million, down 7 percent, on segment revenue of US$218 million, down 3 percent.
Truckload operating income improved 6 percent to US$8.2 million on revenue of US$173 million, down 12 percent.
The effective income tax rate in the current quarter was 25.2 percent compared to 18.2 percent in the third quarter 2023, due to the recording of a discrete benefit recognized in the prior-year quarter.
J.B. Hunt Transport’s services include intermodal, dedicated, refrigerated, truckload, less-than-truckload, flatbed, single source, last mile and transload.

Tags: J.B. Hunt Transport Services Inc.