The Lowell, Ark.-based intermodal and trucking provider recorded net earnings of $385.3 million on revenues of $1.99 billion for the fourth quarter of 2017, up 228 percent and 16 percent year-over-year, respectively.
J.B. Hunt Transport Services, Inc.’s net earnings shot up 228 percent year-over-year in the fourth quarter of 2017 to $385.3 million, the company reported.
The Lowell, Ark.-based intermodal and trucking provider attributed the boost primarily to the $309.2 million benefit from estimating the effect of the change in future tax rates on deferred tax balances.
Fourth quarter 2017 net earnings included pre-announced pretax charges of $20.3 million for a reserve on a cash advance for the purchase of new trailing equipment from a manufacturer that will not meet delivery, and $18.6 million for an increase in reserves for certain insurance and claims.
Total operating revenues for the quarter stood at $1.99 billion, compared with $1.72 billion for the fourth quarter of 2016.
Broken down by segment, compared to the fourth quarter of 2016:
• The intermodal segment posted revenues of $1.1 billion, up 10 percent, thanks to volumes growth of 5 percent and a 5 percent increase in revenue per load;
• The dedicated contract services segment posted revenues of $477 million, up 20 percent, primarily from the addition of new customer accounts and improved asset utilization;
• The integrated capacity solutions segment posted revenues of $323 million, up 40 percent, mainly due to a 19 percent boost in revenue per load, and a 17 percent jump in volumes growth;
• And the truck segment posted revenues of $97 million, up 1 percent, as customer rate per mile increases were offset by a decrease in load count.
J.B. Hunt’s total operating revenues, excluding fuel surcharges, increased 13 percent from the fourth quarter of 2016 to $1.77 billion.
Overall, J.B. Hunt said the benefit from increased revenues was partly offset with cost increases to attract and retain drivers and independent contractors, higher insurance and claims costs, inefficiencies from rail network congestion and maintenance schedules, higher salary and wage expenses and lower asset utilization due to the time trucks remain unseated.