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Article Excerpt
J.B. Hunt Transport Services, Inc., (NASDAQ:JBHT) announced third quarter 2009 net earnings of $40.0 million, or diluted earnings per share of 31 cents vs. 2008 third quarter earnings of $60.3 million, or 47 cents per diluted share.
Total operating revenue for the current quarter was $834 million, a 16% decrease from the $996 million for the third quarter 2008. The decrease in operating revenue was primarily attributable to lower fuel surcharge revenues, which reflect significantly lower fuel costs in the current quarter. Declines in intermodal and truckload pricing also contributed to the lower revenue. Current quarter operating revenue, excluding fuel surcharges, decreased 4% from the third quarter 2008.
Operating income for the current quarter declined to $71 million vs. $106 million in the third quarter 2008. Materially lower freight rates affected operating profits in our Intermodal, Integrated Capacity Solutions and Truck segments. While we were successful at lowering costs in most categories, the reduced expenses did not offset the significant drop in rates. Net interest expense in the current quarter was lower than the previous year, while the effective income tax rate was higher in the third quarter 2009.
"The freight recession that began in the second half of 2006 continued into its third year. Our diversified transportation platform has allowed us to weather the storm in relatively strong fashion. We continue to generate growth in our Intermodal (JBI) and Integrated Capacity Solutions (ICS) segments. Additionally, our Dedicated Contract Services (DCS) segment has successfully transitioned further away from the generic dedicated business to more customized solutions and is poised to re-establish growth in the near future. DCS has been able to maintain a fairly consistent margin in the 10% range, which we believe is a remarkable achievement in the current environment. And despite the biggest decrease in freight rates in history, our Truck (JBT)...
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