J.B. Hunt's first quarter revenues were down 18 percent and operating income was down 21 percent, led by a 45-percent drop in revenue in the company's Truck segment -- but revenue for its Integrated Capacity Solutions
was up 51 percent, while operating income was up 111 percent.
First quarter net earnings of $30.8 million were down from first quarter 2008 earnings of $36.4 million. Total operating revenue for the current quarter was $723 million, an 18 percent 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 the company's Integrated Capacity Solutions segment partially offset lower volumes in its Dedicated Contract Services segment and in the Truck segment. The significant decline in Truck revenues was primarily a result of J.B. Hunt's ongoing long-term strategy to reduce the size of its tractor fleet and due to weaker demand brought about by the current economic recession.
Operating income for the first quarter declined to $57 million vs. $72.1 million for the first quarter 2008. This decline was primarily due to a drop in Intermodal operating income and an operating loss in the 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 percent of our total revenues, continue to differentiate us from other generic transportation offerings," said Kirk Thompson, JBHT President and CEO. "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."
was up 51 percent, while operating income was up 111 percent.
First quarter net earnings of $30.8 million were down from first quarter 2008 earnings of $36.4 million. Total operating revenue for the current quarter was $723 million, an 18 percent 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 the company's Integrated Capacity Solutions segment partially offset lower volumes in its Dedicated Contract Services segment and in the Truck segment. The significant decline in Truck revenues was primarily a result of J.B. Hunt's ongoing long-term strategy to reduce the size of its tractor fleet and due to weaker demand brought about by the current economic recession.
Operating income for the first quarter declined to $57 million vs. $72.1 million for the first quarter 2008. This decline was primarily due to a drop in Intermodal operating income and an operating loss in the 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 percent of our total revenues, continue to differentiate us from other generic transportation offerings," said Kirk Thompson, JBHT President and CEO. "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."
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