Led by its intermodal business, J.B. Hunt Transport Services reported record second quarter 2011 net earnings of $65.7 million, compared to second quarter 2010 net earnings of $52.1 million.
Total operating revenue for the current quarter was $1.15 billion, compared with $943 million for the second quarter 2010.
All four segments contributed to this increase in operating revenue. Load growth of 18% in Intermodal helped drive a 29% increase in segment revenue. Integrated Capacity Solutions and Dedicated Contract Services segments increased operating revenue by 27% and 16%, respectively, while Truck segment revenue rose 4%. Current quarter total operating revenue, excluding fuel surcharges, increased 14% vs. the comparable quarter 2010.
Operating income for the current quarter totaled $113 million vs. $91 million for the second quarter 2010. Three segments contributed to this increase, with Intermodal accounting for nearly $17 million of the increase, while Dedicated and Integrated Capacity combined to add approximately $5 million.
For the Truck segment, however, 2Q operating income was down 3% to $6.9 million. Operating income was favorably impacted by higher freight rates, favorable changes in freight mix and improved utilization. However, higher fuel costs, net of fuel surcharges, increases in driver compensation, partly related to a shortage in the supply of drivers, and higher insurance and claims costs reduced earnings.
Overall, net earnings rose 26% to $65.7 million in the current quarter from $52.1 million in 2010, due to the growth of revenue and operating income. The effective income tax rate for the quarter was 38.5% in both 2011 and 2010.
"Intermodal and DCS, which make up over 80% of the company's total revenue, continued to demonstrate the differentiation qualities we have been working to highlight for some time," said John N. Roberts, JBHT President and CEO. "Both of these businesses have established a leadership position in their respective fields of service. During lingering economic pressures and unsteadiness in the general freight markets, JBI and DCS once again revealed a higher degree of resiliency than that of traditional, full truckload transportation models."
