J.B. Hunt posts record earnings, revenue
by October 13, 2011 3:50 pm 64 views
Lowell-based J.B. Hunt Transport Services continues to operate as if the national economy wasn’t in a funk, with net income for the first nine months of 2011 totaling $184.441 million, up 30.1% compared to the 2010 period.
Total revenue for the first nine months of the year is $3.321 billion, up 19.77% compared to the 2010 period.
“Combining the right mix of services and the commitment of our people, we overcame less predictable freight patterns and some weather related events to produce another record quarter,” Hunt President and CEO John Roberts said in the company’s third quarter earnings report released Thursday (Oct. 13).
Net income for the third quarter ended Sept. 30 was $68.65 million, better than the $52.169 million in the 2010 quarter. Total revenue for the third quarter was $1.171 billion, higher than the $986.024 million in the 2010 quarter. The quarterly income and revenue marks were records for the company.
The quarterly per share earnings of 57 cents pegged the consensus estimate of analysts who cover the company.
Higher fuel costs during the first nine months of 2011 have been offset by increased fuel surcharge revenue. Fuel and fuel taxes total $347.03 million during the January-September period, much higher than the $249.511 million in the 2010 period. Fuel surcharge revenue for the nine months was $618.235 million, almost double the $369.778 million in the 2010 period.
Hunt’s intermodal division posted third-quarter revenue of $691 million, up 24% compared to the 2010 quarter, with operating income reaching $78.4 million, up 30%.
The dedicated contract services segment posted third-quarter revenue of $269 million, up 16%, with operating income of $29.7 million a 34% jump over the 2010 quarter.
The company’s original segment, the truckload operation, posted revenue of $127 million, up 2% in a freight market that is consistently inconsistent. Operating income in the segement was $6.8 million, up 4% compared to the 2010 quarter.
Hunt’s integrated capacity solutions segment had third-quarter revenue of $93 million and operating income of $3.8 million, up 21% and 43%, respectively, compared to the 2010 period.
“We continued to invest capital in businesses that show resiliency despite the ongoing concern many have expressed about the economy. Intermodal, DCS and ICS all delivered double digit growth year over year in both revenue and operating income, while our Truck business yielded modest growth in both categories,” Roberts said.
The capital investments have been significant. Net capital expenditures for the first nine months of 2011 were $324 million, up from $145 million for the 2010 period.
Those investments have added to the company’s debt load. As of Sept. 30, the company has $768 million in debt, up from $649 million as of Sept. 30, 2010.
Shares of J.B. Hunt (NASDAQ: JBHT) closed Thursday at $38.89, down 50 cents. During the past 52 weeks the share price has ranged from a $49.12 high to a $34.42 low.