William B. Cassidy, Senior Editor | Jul 16, 2012 4:38PM EDT
Intermodal trucking giant J.B. Hunt Transport Services reported an $80.5 million second quarter net profit as revenue increased 9 percent to $1.26 billion.
That 22.5 percent increase in net profit followed a 35 percent increase in profit in the first quarter, when Hunt revenue rose 17 percent to $1.17 billion.
The Lowell, Ark.-based company reported $4.5 billion in total revenue in 2011.
Steady demand and higher volumes in its intermodal and brokerage divisions helped offset rising equipment and labor costs in the 2012 second quarter.
Intermodal shipments increased 13 percent year-over-year, while Hunt’s non-asset Integrated Capacity Solutions division increased shipments 16 percent.
The intermodal division accounted for about 58 percent of J.B. Hunt’s revenue, $762 million. Intermodal operating profit increased 22 percent to $93.4 million.
Dedicated Contract Services revenue rose only 1 percent, to $267 million, while operating profit, boosted by lower fuel costs, rose 21 percent to $33.2 million.
J.B. Hunt Truck revenue dropped 3 percent to $126 million, but a 3.2 percent increase in truckload rates per mile boosted profit 27 percent to $8.8 million.
Integrated Capacity Solutions increased revenue 23 percent to $109 million on higher load volume, especially contractual volume growth, the carrier said.
But the brokerage unit’s operating profit dropped 25 percent to $2 million as higher purchased transportation costs narrowed its gross profit margin to 10.6 percent.
Contact William B. Cassidy at wcassidy@joc.com. Follow him on Twitter at @wbcassidy_joc.
