J.B. Hunt Transport Services has announced its financial results for the second quarter of 2015. It reported Q2 revenue of $1.54bn, a 0.65% decline year-on-year. The company also recorded operating income of $174m, an increase of 9.43% over the second quarter of 2014. Accordingly J.B. Hunt’s operating margin stood at 11.29%.
The slight decline in revenue was the result of a combination of contrasting developments. Customer rate increases across all business units, load growth of 2% in Intermodal (JBI), a 6% increase in revenue producing trucks in Dedicated Contract Services (DCS) and load growth of 12% in Integrated Capacity Solutions (ICS) could not offset the decrease in fuel surcharge revenue, sluggish consumer freight demand and lower equipment utilization in our Truck (JBT) business segment. Current quarter total operating revenue, excluding fuel surcharges, increased 7% against the comparable quarter 2014.
The increase in operating income was primarily from customer rate increases, less reliance on outsourced JBI drayage and DCS capacity coverage, load growth, freight mix changes and improved equipment fuel economy. The operating income increase was partially offset by an approximate $14.1m charge for corporate wide streamlining and technology redevelopment costs, the benefits of which are expected to be realized over the next two fiscal years, lower box turns from slower train velocities, higher driver recruiting and retention costs, higher workers’ compensation costs and increased toll costs compared to second quarter 2014.
