Hub Group earnings dip slighly in Q2

The intermodal transportation service provider reported net income fell $0.2 million compared to the second quarter of 2014 despite a 1 percent in crease in revenues.    Intermodal transportation service provider Hub Group has reported net income of $18.5 million for the second quarter ended June 30, 2015 compared to $18.7 million in the second quarter of 2014.
   Hub Group’s second quarter revenues increased 1 percent to $900 million compared to the same period in the previous year.
   The company said second quarter intermodal revenues increased 2 percent to $465 million and truck brokerage revenues increased 8 percent to $93 million, but Unyson Logistics revenues declined 8 percent to $128 million.
   The company’s Mode segment’s revenue increased 1 percent to $234 million.
   Asked about the outlook for the remainder of the year and peak season, CEO David Yeager said, “It seems like it should be a normalized peak. I haven’t gotten anything contrary from any of our retailers that we speak with. If anything it seems like they did get a little bit more inventory in their networks in the second quarter than they had expected, but we don’t think that’s going to really appreciably impact peak.”
   Yeager said the company expects to continue to see intermodal growth of 4 percent to 7 percent for the entire year. In the truckload market, he said the company is seeing “a bit of softness. There is more supply than there is demand right now and we’re certainly, as a result, seeing that in our truck brokerage business.
   “We have not seen the trucking industry being overly aggressive with large amounts of diversion from intermodal at this point, but we certainly do believe again that even with fuel being as low as it is today, that there’s a lot of inherent advantages and cost advantages with intermodal – even up to the 750-mile length of haul,” he said.