J. B. Hunt Transport Services Inc., Lowell, Ark., announced third quarter net earnings of $39.8 million, or diluted earnings per share of 25 cents, compared with 2004 third quarter earnings of $47.9 million, or 29 cents per diluted share.

EPS in the current period includes a previously announced $.10 charge, net of income taxes, for settlement of our arbitration with the BNSF Railway Co. Excluding the arbitration charge of $15.8 million, net of income taxes, third quarter 2005 net earnings were up 16% to $55.6 million.
Total operating revenue for the current quarter was $801 million, compared with $719 million during the third quarter of 2004. During the third quarter of 2005, Intermodal segment revenue, excluding fuel surcharges, rose 8%, while Truck segment revenue, excluding fuel surcharges, increased 3% over the comparable period of 2004. Dedicated Contract Services (DCS) segment revenue, excluding fuel surcharge revenue, increased 3% during the current quarter.
Excluding the arbitration charge of $25.8 million, before income taxes, operating income rose from $82.7 million in 2004 to $90.9 million in 2005. The overall operating ratio, excluding the charge for the arbitration award, for the Company was 88.7% compared to 88.5% in 2004. Also, the company announced a gift to the University of Arkansas totaling $10 million. The Intermodal segment operating ratio, excluding the charge for the arbitration, was 88.1% vs. 88.4%. The DCS operating ratio was 88.9% vs. 90.6%, third quarter this year vs. third quarter last year. The Truck operating ratio was 89.5% compared to the previous year's third quarter of 87.1%.
"Our three-pronged strategy of delivering supply chain solutions to some of the best companies in America continued very successfully in the third quarter of 2005. Not only have we delivered thousands of shipments using Intermodal, Dedicated and Truckload services SAFELY and on time, but we have managed our business in a way that has achieved some of the best margins in the relative segments while achieving return on invested capital exceeding 20%," stated Kirk Thompson, president and chief executive officer.