Hub Group has released its final set of quarterly financial results prior to the inclusion of Estenson Logistics within its reporting. Despite revenues growing 8.1% to $924.5m, operating income fell by more than half to $16.6m.
Employee costs were one cause of the 51.7% drop in operating income, with severance costs, employee raises and higher headcount being partially offset by a decrease in bonuses. More importantly however, general and administrative costs were up $4.1m due to an increase in IT costs, including its costs related to its transportation management system. There was also a $1.2m increase in professional fees for the Estenson purchase, which closed on Jul 1, 2017.
Within its Hub segment, the group saw revenues grow by around 9% to $705.2m. Intermodal revenues grew by 3% and truck brokerage revenues were up 26%. Its 3PL provider, Unyson, saw turnover grow 17% as a result of new business won in the previous year. Its Mode Segment saw revenues grow approximately 5% to $243m for Q2.
Source: Hub Group
