J.B.Hunt Transport Services Inc.(NASDAQ:JBHT), Lowell, Ark., announced record first quarter net earnings of $47 million for 2005, or diluted earnings per share of 57 cents, a 44% increase

over 2004 first quarter earnings of $33 million, or 40 cents per diluted share.
Total operating revenue for the current quarter was $709 million, compared with $618 million during the first quarter of 2004. During the first quarter of 2005, truck segment revenue, excluding fuel surcharges, increased 6%, while the intermodal segment revenue, excluding fuel surcharges, rose 13% over the comparable period of 2004. Dedicated segment revenue (DCS), excluding fuel surcharge revenue, increased 10% during the current quarter.
Operating income rose 36% from $58 million in 2004 to $79 million in 2005 on a 10% rise in revenues, net of fuel surcharges. The overall operating ratio for the company improved 180 basis points to 88.8% compared to 90.6% in 2004.
Truck improved its operating ratio 350 basis points to 89.5% and DCS improved 190 basis points to 89.7%. Intermodal recorded an operating ratio of 88.0% for both the first quarter of 2005 and the first quarter of 2004. Operating income for truck, intermodal and DCS rose by 66%, 18% and 41% respectively. Continued safe operations, higher freight rates and a lower effective income tax rate contributed to the net earnings improvement.
According to Kirk Thompson, president and CEO, “We were able to achieve a respectable margin in the typically difficult first quarter for the second year in a row, a feat which had been an elusive target for us prior to 2004. While the demand for the first quarter of 2005 was not quite as strong as the record-setting pace for the same period of 2004, we did produce 44% more in net earnings during the first quarter of 2005. Pricing in all three operating segments remains strong, reflecting the unchanged fundamentals in our business: namely, a serious driver shortage, tight rail capacity, a limited number of trucks and the resulting disequilibrium in the balance of supply and demand.”