It's the season for trucking comapany earnings reports, with some of the nation's largest carriers among the first to report varying results.


J.B. Hunt
A slowing American economy and a general downturn in business for the trucking industry are evident in third quarter financial numbers reported by J.B. Hunt Transport.
The Arkansas-based company reported net earnings of $4.5 million, compared with 2000 third quarter net earnings of $9.1 million. Company officials say while earnings per share in the quarter are significantly below a year ago, they exceeded management expectations due primarily to better than anticipated earnings in September.
Total revenue for the third quarter of 2001 was $537.2 million, compared with $509.4 million during the third quarter of 2000. During the third quarter of 2001, revenues of the company's truck segment grew 1%, while intermodal segment revenue rose 9% over the comparable period of 2000. Dedicated segment revenue rose 8% during the third quarter of 2001.
J.B. Hunt says it is continuing to focus on improving the truck operating ratio. September recorded the lowest empty miles per load in over a year and the best tractor utilization so far in 2001. Additionally, truck rates (excluding fuel surcharges) increased 3.4% for the quarter vs. a year ago.
The weak economy had a particularly severe impact on the dedicated contract services segment in the form of reduced freight volumes with key customers. The business unit has incurred unusually high start-up costs related to a number of new projects. These factors, along with the continuing increases in insurance and equipment costs, have had an adverse impact on the earnings. As a result, the earnings shortfall for the company as a whole can be largely attributed to a decline in the operating results of this unit.
While the overall financial results are disappointing and economic uncertainty clouds the near-term future, the company says it’s encouraged by the earnings consistency of its intermodal business and the earnings improvement and trends in the truck segment. Additional rate increases will be necessary as rising costs continue to press upon the entire trucking industry in a number of areas. J.B. Hunt management says it is also confident it will be able to show improvement in DCS earnings through cost, efficiency and pricing initiatives and as economic conditions improve.

Heartland Express
Heartland Express third quarter revenue increased 8.5%, to $73.9 million from $68.1 million from a year ago, while net income increased 9.8%, to $9.2 million from $8.4 million last year.
According to a Heartland news release, the trucking industry continues to be challenged by a weakening economy, depressed equipment values, increasing costs, and a shortage of independent contractors. Despite this Heartland reported an operating ratio of 82.5% for the quarter and 82.6% for the first nine months of the year.
During the third quarter Heartland grew its tractor and trailer fleet and progressed with the organization's planned fleet update. They took delivery of 100 tractors and 350 trailers. The percentage of miles generated by company-owned tractors increased to 68%, an increase from the 65% reported in the first quarter of 2001.
The equipment purchases are being made from cash on hand and cash flow. The company ended the quarter with no debt and nearly $153 million in cash and short-term investments, compared to $125 million at the same time last year.
With no debt, a newer fleet (the average age of company tractors 18 months) and its strong cash position, Heartland officials say they believe the company is one of the better positioned companies to meet the current industry challenges and will be well positioned to benefit from any strengthening of the economy.

C.H. Robinson
Multi-modal and logistics provider C.H. Robinson Worldwide reports third quarter net revenues increased 5.6 percent to $113.2 million from $107.2 million in 2000.
Income from operations increased 15.3 percent to $34.8 million from $30.2 million in 2000. Net income increased 22.6 percent to $22.6 million from $18.5 million in 2000.
These results include other income of $2 million from unusual items, principally a gain on sale. Excluding these unusual items, net income increased 16.1 percent to $21.4 million.
"We're pleased with our performance this quarter," said D.R. "Sid" Verdoorn, chairman and CEO. "In a very tough environment, our profit centers have done a good job selling Robinson and aggressively managing their operating expenses.
"We continue to see the advantages of our non-asset-based, variable cost business model. Our decentralized structure keeps us in tune with the marketplace and gives our profit centers the authority to make adjustments quickly."
Although many of the company's customers' freight volumes decreased compared to previous periods, Robinson's core truck transportation business was up more than 8 percent.