J.B. Hunt Transport Services announced third quarter 2007 net earnings of $50.8 million, or diluted earnings per share of 38 cents versus 2006 third quarter earnings of $57.8 million, or 39 cents per diluted share.
Total operating revenue for the current quarter was $892 million, a 4 percent increase over the $858 million for the third quarter 2006. Containers and trailers grew from 51,889 at the end of the third quarter 2006 to 57,489, or 11 percent, over the same period last year. The growth in the fleet was primarily to support additional intermodal business.
Operating income for the current quarter decreased to $96 million versus $100 million for the third quarter 2006. Net interest expense increased significantly from $5.2 million in the third quarter 2006 to $12.5 million in the current quarter, primarily due to higher levels of debt.
"In the early part of this decade we embarked upon a plan to dramatically improve our margins, our return on invested capital, our returns to shareholders and our free cash flow," said Kirk Thompson, JBHT president and CEO. "While our shrinking truck business is currently showing the strains of a depressed freight economy, we have experienced tremendous success at accomplishing our previously established goals. To post a sub-90 percent operating ratio in this environment and generate earnings of $51 million is an achievement that confirms our strategy. It appears we have also accomplished our goal of becoming less cyclical in earnings. We are by no means satisfied with our results, but frankly we can't be too disappointed in the level of earnings power the company has in a particularly difficult environment. Our Intermodal business clearly represents the foundation of our earnings resiliency and demonstrates that our company is no longer driven by the cyclicality typical of a truckload model."
Total operating revenue for the current quarter was $892 million, a 4 percent increase over the $858 million for the third quarter 2006. Containers and trailers grew from 51,889 at the end of the third quarter 2006 to 57,489, or 11 percent, over the same period last year. The growth in the fleet was primarily to support additional intermodal business.
Operating income for the current quarter decreased to $96 million versus $100 million for the third quarter 2006. Net interest expense increased significantly from $5.2 million in the third quarter 2006 to $12.5 million in the current quarter, primarily due to higher levels of debt.
"In the early part of this decade we embarked upon a plan to dramatically improve our margins, our return on invested capital, our returns to shareholders and our free cash flow," said Kirk Thompson, JBHT president and CEO. "While our shrinking truck business is currently showing the strains of a depressed freight economy, we have experienced tremendous success at accomplishing our previously established goals. To post a sub-90 percent operating ratio in this environment and generate earnings of $51 million is an achievement that confirms our strategy. It appears we have also accomplished our goal of becoming less cyclical in earnings. We are by no means satisfied with our results, but frankly we can't be too disappointed in the level of earnings power the company has in a particularly difficult environment. Our Intermodal business clearly represents the foundation of our earnings resiliency and demonstrates that our company is no longer driven by the cyclicality typical of a truckload model."
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