J. B. Hunt Transport Services Inc. announced second-quarter 2007 net earnings of $63.9 million versus earnings of $55.3 million in the same period last year. Included in the latest results is a benefit of $10.3 million,
net of income taxes, resulting from the settlement of a proposed tax adjustment by the IRS.
Total operating revenue for the current quarter was $856 million, a 2 percent increase from the $838 million for the second quarter 2006.
The combined tractor fleet declined from 11,993 in the second quarter 2006 to 11,760 in the second quarter 2007. Containers and trailers grew from 50,738 to 55,821 over the same period. The growth in the fleet, including containers and trailers, was primarily to support additional intermodal business.
Operating income for the current quarter increased slightly to $96.2 million versus $95.4 million for the second quarter 2006. Net interest expense increased significantly from $3.1 million in the second quarter 2006 to $10.8 million in the current quarter, primarily due to higher levels of debt. These increased borrowings were related primarily to our purchases of company stock, payment of the IRS tax settlement and purchases of trailing equipment off operating leases. Also contributing to the higher net interest expense was approximately $3 million of additional accrued interest expense as a result of the settlement of a proposed IRS adjustment.
"Thanks to healthy growth in volumes and higher prices in our Intermodal segment, we were able to withstand slower net growth in our DCS segment, and stagnant freight volumes and lower prices in our Truck segment to produce a solid operating performance for the second quarter 2007," said Kirk Thompson, JBHT president and CEO.