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J. B. Hunt Transport Services, Inc. Reports Revenues and Earnings for the First Quarter 2009
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LOWELL, Ark., -- J. B. Hunt Transport Services, Inc. (NASDAQ:JBHT) announced first quarter 2009 net earnings of $30.8 million, or diluted earnings per share of 24 cents vs. first quarter 2008 earnings of $36.4 million, or 28 cents per diluted share.
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Total operating revenue for the current quarter was $723 million, an 18% decrease from $878 million for the first quarter 2008. The decrease in operating revenue was primarily attributable to lower fuel surcharge revenues which reflect significantly lower fuel costs in the first quarter of 2009. Higher Intermodal segment volumes and significant growth in our Integrated Capacity Solutions (ICS) segment partially offset lower volumes in our Dedicated Contract Services (DCS) segment and in our Truck segment. The significant decline in Truck revenues was primarily a result of our ongoing long-term strategy to reduce the size of the segment's tractor fleet and due to weaker demand brought about by the current economic recession. Current quarter operating revenue, excluding fuel surcharges, decreased 8% from the first quarter 2008.
Operating income for the current quarter declined to $57.0 million vs. $72.1 million for the first quarter 2008. This decline was primarily due to a drop in our Intermodal operating income and an operating loss in our Truck segment. The operating income decline in both segments reflects lower demand brought about by the current economic recession. Net earnings declined in the current quarter vs. 2008 due to the lower operating income, offset somewhat by significantly lower interest expense and a slightly lower effective income tax rate. Net interest expense declined approximately $4.8 million, compared with the same period 2008, primarily due to the reduction of outstanding debt and lower interest rates.
"Our two biggest segments, Intermodal and DCS, which make up 79% of our total revenues, continue to differentiate us from other generic transportation offerings. Despite a weak economy and lower demand, both Intermodal and DCS have shown great resilience in profitability in the face of serious negative macroeconomic conditions.
"The lingering freight recession, now estimated to be in the third year, is the longest and deepest in modern transportation history. Our diversification strategy initiated several years ago and our best-in-class intermodal and dedicated services have helped sustain our earnings in these turbulent times. We believe we have taken the right actions to weather this downturn, while leaving the Company very well positioned for the eventual recovery. Intermodal and DCS, in particular, are leaders in markets where we have established defensible characteristics. Further, ICS enables us to bring the substantial resources of our Company into markets that previously did not fit our network," said Kirk Thompson, JBHT President and CEO.
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