In The News

JB Hunt revenue up, but ‘freight recession’ drives profit down

LOWELL, Ark. — First quarter revenues at J.B. Hunt Transport Services Inc. were up 10 percent but doldrums in the industry drove profits down 10 percent to $72 million, the company announced Monday.

In an earnings release issued after the bell, the trucking firm reported revenue of $878 million, down from $797 million in the same period a year ago.

Profits were down from $80.3 million a year ago — 28 cents per share, down from 30 cents per share.

Analysts polled by Thomson Financial had forecast revenues of $846 million and profits of 30 cents per share.

Calling the current economic climate “what may be recorded as the worst freight recession in a long time,” J.B. Hunt President and CEO Kirk Thompson said changes at Hunt have helped cushion company earnings.

“Our diversified transportation model of providing excellent service and value creation to our customers has held up exceptionally well. We continue to move further away from an asset-heavy truckload model to a more variable cost structure, which should produce free-cash flow and feature transportation services that reflect our competitive advantages,” Thompson said.

The company said higher intermodal volumes accounted for some of the increase in revenue, as did higher fuel surcharges from a year ago.

“Given the unprecedented rise in fuel prices during the first quarter 2008 and extreme weakness in freight demand in our truck segment, we are actually quite pleased with the relative performance of our company,” Thompson said.

The company said that its debt increased from $449 million a year ago to $865 million, with the money going toward the purchase of company stock.