J. B. Hunt Transport Services Inc., Lowell, Ark., announced second quarter 2004 net earnings of $45.6 million, or diluted earnings per share of 55 cents, compared with 2003 second quarter earnings of $25.1 million, or 31 cents per diluted share.

Total operating revenue for the current quarter was $679 million, compared with $600 million during the second quarter of 2003. During the second quarter of 2004, truck segment revenue, excluding fuel surcharges, increased 8%, while the Intermodal segment revenue, excluding fuel surcharges, rose 14% over the comparable period of 2003. Dedicated segment revenue, excluding fuel surcharge revenue, increased 9% during the current quarter.
Operating income rose 70% from $46.4 million in 2003 to $79.2 million in 2004 on an 11% rise in revenues net of fuel surcharges. The overall operating ratio for the company improved 400 basis points to 88.3% compared to 92.3% in 2003. The improvement in profitability was particularly evident in the truck business segment, which improved the operating ratio 650 basis points to 87.5%. Intermodal recorded an operating ratio of 87.9% vs. 90.3% for the second quarter of 2003, while Dedicated Contract Services (DCS) produced an operating ratio of 90.5% vs. 92.9%, an improvement of 240 basis points in both segments.
"It has been a long, long time since our truck business recorded a quarterly operating ratio in the 80%'s," said Kirk Thompson, president and CEO of the company. "Even though we expect to be able to sustain the improvement in margins we have achieved, growth in the truckload industry is at a virtual standstill until additional truck drivers are attracted into the industry. We can not predict when that will occur so we will utilize our limited capacity in the most efficient manner possible."