J. B. Hunt Transport Services Inc. has reported record annual net earnings of $51.8 million for 2002, or diluted earnings per share of $1.33 -- also a record number --
compared with 2001 full-year earnings of $32.9 million, or 91 cents per diluted share.
Total operating revenue for the year was $2.25 billion, compared with $2.10 billion in 2001. While the economy and level of freight activity were challenging during 2002, the company reported improved operating income and net earnings for the year.
Operating income rose 40% from $72.2 million in 2001 to $101 million in 2002 on a 7% rise in revenues. Net earnings rose 57% to a record $51.8 million in 2002 from $32.9 million in 2001. Earnings per share jumped 46% in spite of a nearly 8% increase in average shares outstanding.
The company says a significant portion of the full year 2002 net earnings improvement was a result of the continued focus on improving revenue quality in the truck segment. Higher revenue per loaded mile, an intense focus on freight selection and reduced empty miles were a result of the truck segment's yield management initiatives.
Fourth quarter 2002 net earnings were $14.7 million or 37 cents per diluted share, compared with 2001 fourth quarter earnings of $18.2 million, or 50 cents per diluted share. The fourth quarter earnings for 2002 were negatively influenced by a higher income tax rate, higher insurance and claims costs, and a loss incurred on a terminal facility that the company has agreed to sell. As previously reported, the fourth quarter of 2001 benefited from a change in the method of estimating ultimate losses relating to liability and workers' compensation claims.
Total operating revenue for the fourth quarter of 2002 was $597.7 million, compared with $546.2 million in 2001.