Hub Group Profit Rises 16 Percent

Intermodal middleman and logistics firm Hub Group posted a 16 percent gain in second-quarter net income from a year earlier, to $9.63 million, as volume in its main box-shipment business jumped by 25 percent.

Overall revenue rose 26 percent to $458 million in the April-June period. Chairman and CEO David P. Yeager said various factors came together to lift Hub’s earnings.

"The return of a robust freight market coupled with the retention of our long-standing customer relationships and success in the bids this year helped drive our impressive volume and earnings growth this quarter," he said. "We have improved our drayage efficiencies and equipment utilization, and look forward to meeting what we expect will be healthy demand in the second half of this year."

Hub said intermodal revenue increased 26 percent to $320 million, while its truck brokerage receipts rose 21 percent to $86 million. Revenue at Hub’s Unyson Logistics unit increased 38 percent to $52 million.

The domestic-focused intermodal company has been warning customers that already tight intermodal capacity will tighten further as the peak autumn season for box moves by retailers. It is receiving 2,500 new jumbo 53-foot containers and will have them all added to its fleet this summer.

-- Contact John D. Boyd at jboyd@joc.com.