J. B. Hunt Transport Services Inc., Lowell, Ark., announced record annual net earnings of $95.5 million for 2003 after reversing 2003 expected non-cash tax benefits of $7.7 million resulting from a sale leaseback transaction on containers.

Earnings in 2002, which were the previous record, were $51.8 million. Diluted earnings per share for 2003 (after the income tax charge) were $1.17, also a record number, compared with 2002 full-year earnings of 66 cents per diluted share.
Total operating revenue for the year was $2.43 billion, compared with $2.25 billion in 2002. Operating income rose 84% from $101 million in 2002 to $186 million in 2003 on an 8% rise in revenues. The overall operating ratio for the company improved 310 basis points to 92.4% compared to 95.5% in 2002. The improvement in profitability was evenly distributed among Hunt’s three business segments as Truck improved 270 basis points to 94.1%, Intermodal improved 300 basis points to 90.3% and Dedicated Contract Services (DCS) improved 360 basis points to 93.3%.
Fourth quarter 2003 net earnings were $34.2 million, or 41 cents per diluted share, before the deduction for income taxes, compared with 2002 fourth quarter earnings of $14.7 million, or 18 cents per diluted share. Final net earnings after reversing the 2003 tax benefits all in the fourth quarter, were $26.5 million or 32 cents per diluted share. Total operating revenue for the fourth quarter of 2003 was $640.7 million, compared with $597.7 million in 2002.
"Clearly, though long in coming, we are delighted at the continued improvement in our profitability," said Kirk Thompson, president and CEO. "While we have much more to do in attaining a margin that justifies the risk involved in our business, we are satisfied with the pace of the progress. The teamwork and dedication of almost 16,000 transportation professionals has brought us to this point."