J.B. Hunt Transport Services raced ahead of a slowing economy in the second quarter, increasing net profit 26 percent over the same quarter a year ago and 31 percent compared with the first quarter.
The intermodal trucking giant reported $67.5 million in net profit on $1.15 billion in second quarter revenue. Sales accelerated $150 million from the first quarter.
Year-over-year, J.B. Hunt Transport’s net profit was up 26 percent and its revenue was up 22 percent. Its operating income increased 24 percent to $113 million.
J.B. Hunt Transport is the nation’s largest truckload carrier and the fourth largest trucking operator ranked by revenue, according to SJ Consulting Group data.
All of the $3.79 billion company’s divisions reported year-over-year growth, led by a 29 percent increase in intermodal sales on an 18 percent increase in load volume.
The Lowell, Ark.-based carrier added a net 2,000 intermodal containers to its fleet in the quarter, bringing its total box capacity to more than 50,000 units.
J.B. Hunt’s brokerage arm, Integrated Capacity Solutions, expanded revenue 27 percent to $89 million, and Dedicated Contract Servicesincreased sales 16 percent to $264 million. J.B. Hunt’s truckload revenue rose 4 percent to $130 million.
The company’s intermodal and dedicated business units “once again revealed a higher degree of resiliency than that of traditional, full truckload transportation models,” J.B. Hunt Transport President and CEO John N. Roberts said.
Much of the intermodal growth came in the Eastern U.S., where volume grew 32 percent, compared with 12 percent growth in transcontinental lanes.
Intermodal pricing rose 4.4 percent year-over-year in the quarter, as shippers moved more freight from over-the-road tractors to intermodal containers.
The truckload division struggled with higher operating costs in the quarter. Despite higher rates, its operating profit fell 3 percent from a year ago to $6.9 million.
J.B. Hunt Truck’s average rate per mile, excluding fuel surcharges, rose 6.7 percent overall, while rates from consistent shippers rose 4.7 percent.
Truckload revenue rose 4 percent to $130 million. Excluding fuel surcharges, that revenue actually fell 2 percent compared with the second quarter last year.
Contact William B. Cassidy at email@example.com. Follow him on Twitter at @wbcassidy_joc