J.B. Hunt Transport Services Inc., announced fourth quarter 2007 net earnings of $54.3 million versus 2006 fourth quarter earnings of $57.8 million.
Financial results for the current quarter include an $8.4 million
pretax charge to write down certain assets held for sale to estimated fair value. Fourth quarter 2006 results include a $12.4 million pretax charge to increase casualty and workers' compensation claims reserves.
Total operating revenue for the current quarter was $945 million, an 11 percent increase over the $852 million for fourth quarter 2006. This increase in operating revenue was primarily attributable to higher Intermodal volumes and significant growth in the company's Integrated Capacity Solutions (ICS) segment that more than offset the smaller fleet and weaker demand in its truck segment. In addition, higher fuel surcharge revenues related to the increase in fuel prices, relative to the same period a year ago, increased revenues. Current quarter operating revenue, excluding fuel surcharges, increased 6 percent over the same period of 2006.
Operating income for the current quarter increased slightly to $96.3 million versus $95.4 million for fourth quarter 2006.
"We continue to demonstrate progress toward moving our economic model from that of a primarily asset-based truckload carrier of the past to an asset-light transportation company," said Kirk Thompson, president and CEO. "Our industry leading Intermodal business had the best fourth quarter ever and our best year in history in 2007. In addition, our Dedicated Contract Services (DCS) segment fared extremely well in a very difficult freight environment.
"While our Truck segment continues to reflect one of the worst freight recessions in memory, ICS's revenue grew 259 percent during fourth quarter 2007 compared to the same period of 2006. The ramp up continued with year over year growth of 146 percent in the third quarter, 53 percent in the second quarter and 26 percent in the first quarter. We plan to continue to grow the segments that are producing acceptable returns on invested capital while reducing the Truck segment until acceptable margins are achieved. Overall, we are extremely pleased with these results."