J. B. Hunt Transport Services Inc., announced fourth-quarter 2006 net earnings of $57.8 million versus 2005 fourth quarter earnings of $65.3 million.

Financial results for the current quarter include a $12.4 million pretax charge to increase casualty and workers’ compensation claims reserves. This $12.4 million pretax charge increased casualty and workers’ compensation claims reserves to reflect the full administrative and termination costs of insurance contracts as the claims are incurred, rather than in the year the contracts terminate.
For the full year, the company earned $219.9 million or $1.44 a share, up from $207.3 million or $1.28 a year earlier. Revenue rose 6 percent to $3.33 billion.
Total operating revenue for the current quarter was $852 million, a slight decrease from the $858 million for the fourth quarter of 2005. This decrease in operating revenue was primarily attributable to a reduction in fuel surcharges related to the decline in fuel prices relative to the same period a year ago and moderating demand in its Truck segment. Current quarter operating revenue, excluding fuel surcharges, increased 1 percent over the same period of 2005. This increase in total operating revenue, excluding fuel surcharges, was partly the result of growth in the combined tractor fleet from 11,877 in the fourth quarter of 2005 to 12,127 in the fourth quarter of 2006. Containers and trailers grew from 49,733 to 52,881 over the same period. The growth in the fleet was to support additional intermodal and dedicated business.
Operating income for the current quarter declined to $95.4 million versus $106.6 million for the fourth quarter of 2005.
“Once again the power and complimentary balance of our economic model was recognized in the fourth quarter,” said Kirk Thompson, president and CEO. “Outstanding results in both Intermodal and Dedicated Contract Services offset lower operating income from our Truck segment, which was facing particularly tough comparisons from the extremely profitable fourth quarter of 2005. 72 percent of our revenue and 84 percent of our operating income in the current quarter was derived from non-traditional truckload services. Demand for our Intermodal service was at record levels during the quarter and DCS continued to produce good growth and strong results while Truck performance was muted due to softening demand.”