J.B. Hunt 2nd-quarter profit slips, beats forecast as revenue grows

J.B. Hunt said the revenue increase reflected higher fuel surcharges, along with growth in its intermodal segment and its integrated capacity solutions segment. Excluding the fuel surcharge, revenue rose 3 percent.

The Associated Press

7/14/2008

LOWELL, Ark. — Trucking company J.B. Hunt Transport Services Inc. said its second-quarter profit fell 21 percent, as the prior-year quarter included a one-time gain, but results came in ahead of Wall Street expectations.

The truckload operator posted profit for the quarter ended June 30 of $50.6 million, or 39 cents per share, compared with net income of $63.9 million, or 45 cents per share, in the corresponding period last year.

The 2007 second quarter included a gain of $10.3 million, or 7 cents per share, resulting from the settlement of a tax adjustment.

Revenue rose 14 percent, to $977.3 million, from $855.9 million a year ago. J.B. Hunt said the revenue increase reflected higher fuel surcharges, along with growth in its intermodal segment and its integrated capacity solutions segment. Excluding the fuel surcharge, revenue rose 3 percent.

Analysts polled by Thomson Financial, on average, were expecting profit of 36 cents per share, on revenue of $925.4 million.

Intermodal revenue rose 28 percent, to $496 million. J.B. Hunt President and Chief Executive Kirk Thomson said the company's strategy to shift more of its operations to intermodal, which uses both trucks and rails to ship goods, has helped mitigate the rise in fuel prices for its customers.

Revenue in the trucking segment slipped 14 percent to $192 million, which the company said reflected a reduction in loads and elimination of more than 1,000 tractors. Excluding fuel surcharges, trucking revenue fell 23 percent.