J.B. Hunt Transport Services has announced its financial results for the third quarter of 2014 ended September 30. It reported revenue of $1.60bn, a 12% increase over the third quarter of 2013. The company also recorded operating income of $172m, up 14% year-on-year. Accordingly J.B. Hunt’s margin stood at 10.75%.
The increase in revenue came as a result of load growth in the Intermodal segment, leading to an 8% increase in intermodal revenue. Improved asset productivity and implemented rate increases in the Dedicated Contract Services segment resulted in a 13% increase in segment revenue year-on-year. Meanwhile, an increase in both load volume and revenue per load in the Integrated Capacity Solutions segment led to a 35% increase in that segment’s revenue.
Contrastingly Truck segment revenue decreased by 1%, primarily from a 6% smaller operating fleet. This decline partially offset the revenue growth of the other division’s.
The increase in operating income from load growth, higher productivity and rate increases was partially offset by lower box turns from slower train speeds, increases in driver recruiting costs, higher rates paid to third party carriers, higher driver mileage pay, higher equipment costs and higher insurance and workers’ compensation costs.
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