J. B. Hunt Transport Services Inc., Lowell, Ark., has third quarter 2003 net earnings of $32.7 million compared with third quarter earnings of $16.8 million last year.
Total operating revenue for the current quarter was $622 million, compared with $583 million during the third quarter of 2002. During the third quarter of 2003, revenue of Hunt’s truck segment was basically flat, while the intermodal segment revenue rose 16% over the comparable period of 2002. Dedicated segment (DCS) revenue increased 4% during the current quarter. Consolidated operating income of $57.6 million increased 105% from the same quarter a year ago as the overall operating ratio improved 450 basis points to 90.7%.
"Clearly we are pleased with the improvement in profitability of the company as we recorded record net earnings in the third quarter," said Kirk Thompson, president and chief executive officer. "Achieving the progress we have witnessed over the past three years has not been easy. The economy has been lackluster for the better part of that three-year period and continues to struggle intermittently. Still, through internal adjustments and efficiency gains, we were able to once again show marked improvement in profitability as our quest for appropriate margins in each of our three business segments continued in earnest during the third quarter."
Thompson said challenges remain ahead. "The once ever-present, but lately subdued, driver shortage began to re-appear in the last six months. We have responded to the tightening of driver supply by temporarily adjusting our starting pay in the truck segment. Rather than wait for idle capacity, we chose to initiate a pre-emptive move to shore up our driver population.
"Expansion of capacity in the truckload industry, already put on hold by a number of economic issues, seems all but impossible for the foreseeable future given the renewed difficulty of hiring additional truck drivers. Also, new Federal Hours of Service regulations are expected to limit the available driving time of the nation's driving force, putting more pressure on driver's productivity and ultimately on their incomes. Capacity shortages that have been felt sporadically across the country are likely to increase once the new rules are implemented in January of 2004," he said.
"These major issues, along with continued cost increases in a number of areas will continue to necessitate significant freight rate increases."
Total operating revenue for the current quarter was $622 million, compared with $583 million during the third quarter of 2002. During the third quarter of 2003, revenue of Hunt’s truck segment was basically flat, while the intermodal segment revenue rose 16% over the comparable period of 2002. Dedicated segment (DCS) revenue increased 4% during the current quarter. Consolidated operating income of $57.6 million increased 105% from the same quarter a year ago as the overall operating ratio improved 450 basis points to 90.7%.
"Clearly we are pleased with the improvement in profitability of the company as we recorded record net earnings in the third quarter," said Kirk Thompson, president and chief executive officer. "Achieving the progress we have witnessed over the past three years has not been easy. The economy has been lackluster for the better part of that three-year period and continues to struggle intermittently. Still, through internal adjustments and efficiency gains, we were able to once again show marked improvement in profitability as our quest for appropriate margins in each of our three business segments continued in earnest during the third quarter."
Thompson said challenges remain ahead. "The once ever-present, but lately subdued, driver shortage began to re-appear in the last six months. We have responded to the tightening of driver supply by temporarily adjusting our starting pay in the truck segment. Rather than wait for idle capacity, we chose to initiate a pre-emptive move to shore up our driver population.
"Expansion of capacity in the truckload industry, already put on hold by a number of economic issues, seems all but impossible for the foreseeable future given the renewed difficulty of hiring additional truck drivers. Also, new Federal Hours of Service regulations are expected to limit the available driving time of the nation's driving force, putting more pressure on driver's productivity and ultimately on their incomes. Capacity shortages that have been felt sporadically across the country are likely to increase once the new rules are implemented in January of 2004," he said.
"These major issues, along with continued cost increases in a number of areas will continue to necessitate significant freight rate increases."
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