J.B. Hunt’s earnings slip amid higher revenues

The Lowell, Ark.-based intermodal and trucking provider’s revenues for the third quarter of 2016 rose 7 percent year-over-year to $1.69 billion.    J.B. Hunt Transport Services, Inc. posted net earnings of $109.4 million for the third quarter of 2016, a 5 percent drop from the third quarter of 2015.
   The Lowell, Ark.-based intermodal and trucking provider’s revenues for the quarter increased 7 percent year-over-year to $1.69 billion. The increase in revenues was driven by volumes growth of 7 percent in the Intermodal (JBI) segment, a 2.9 percent increase in revenue producing trucks and improved asset productivity in the Dedicated Contract Services (DCS) segment, an 88 percent surge in load volumes in the Integrated Capacity Solutions (ICS) segment, and a 4 percent increase in truck count in the Truck (JBT) segment.
   However, the revenues increase was partially offset by lower customer rates in JBI, ICS and JBT; and tepid customer demand.
   The JBI segment saw revenues tick up 2 percent year-over-year for the quarter to $970 million, reflecting volumes growth and a 4.2 percent drop in revenue per load.
   Revenues in the DCI segment for the third quarter increased 6 percent year-over-year to $394 million. The segment experienced an addition of 205 revenue producing trucks from the third quarter of 2015.
   The ICS segment saw revenues for the quarter surge 35 percent year-over-year to $233 million. Although the segment’s load volumes skyrocketed 88 percent from the third quarter of 2015, revenue per load fell 28.5 percent due to lower fuel prices, freight mix changes driven by customer demand, and a decline in customer rates on contractual business.
   Meanwhile, revenues in the JBT segment remained flat compared to the third quarter of 2015.