J.B. Hunt posts earnings of $133.6 million in second quarter, down 10 percent from a year ago

Intermodal (JBI) operating income was $124.4 million, a 7 percent drop from the same quarter in 2018. The company’s segment revenue was $1.15 billion, down 1 percent from the same period in 2018. “Benefits from customer rate increases were offset by the volume decline, higher rail purchased transportation costs, higher driver pay, retention and recruiting costs, increased technology modernization costs and increased equipment and facilities ownership costs,” J.B. Hunt said in its release.

Dedicated Contract Services (DCS) segment revenue was $680 million, up 28 percent over the same quarter in 2018. Its operating income was $60.5 million, up 3 percent from the second quarter of 2018.

This segment saw fleet growth of 1,755 revenue-producing trucks compared to the second quarter of 2018. This is up 259 trucks compared to the first quarter of 2019. The company said approximately 44 percent of these additions represent private fleet conversions and 8 percent represent Final Mile Services versus traditional dedicated capacity fleets. Customer retention rates remain above 98 percent, the company said.

Integrated Capacity Solutions segment revenue was $334 million, down 4 percent from the same quarter in 2018. “Higher contracted truckload volume was offset by a 33 percent decrease in less-than-truckload shipments and weaker spot market activity compared to second quarter 2018,” JB Hunt said in its release.

Its operating income decreased approximately 104 percent from the same period in 2018, “primarily from lower gross profit margin, higher personnel costs, increased digital marketing costs and higher technology development costs as investments continue to be made to expand capacity and functionality of Marketplace for J.B. Hunt 360,” according to the release.

In J.B. Hunt’s truck division, revenues were down 2 percent to $99.6 million. “Revenue, excluding fuel surcharges, was flat compared to second quarter 2018 on flat load count,” the company said. 

Its operating income was 8.9 million, up 19 percent compared with the same quarter in 2018.

“The benefits from lower equipment ownership costs and decreased non-driver personnel expense were partially offset by higher driver and independent contractor costs per mile compared to the second quarter 2018,” J.B. Hunt said.

At the end of the second quarter, J.B. Hunt’s trucking division was operating 1,879 tractors compared to 1,976 in 2018.