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J.B. Hunt Transport Services Inc. reported net income fell and revenue increased in the second quarter amid mixed results in its business units.
Operating income for the period ended June 30 dropped 10% to $193.1 million, or $1.23 per share, compared with $214.8 million, or $1.37, a year earlier.
Operating revenue climbed to $2.26 billion, compared with $2.14 billion a year earlier, an increase of 6%.
Revenue growth primarily was due to a 19% increase in revenue-producing trucks and an 8% increase in truck productivity in its dedicated contract services unit.
That partially was offset by an 8% decline in volume in its intermodal business, a 7% decline in volume in its integrated capacity solutions unit and fewer tractors operating in its truck division compared with the prior year, according to the Lowell, Ark., company.
The amount of operating revenue in the integrated capacity solutions unit executed through Marketplace for J.B. Hunt 360° — its transportation management system in which shippers can quote, book and ship freight online, and carriers can find loads — increased to $222 million compared with $137 million in second-quarter 2018. The intermodal unit executed $41 million of third-party dray cost, and the truck unit executed $5 million of its independent contractor costs through the platform during this quarter.
“Overall, we felt like there was some positives in an otherwise weak freight environment,” Chief Financial Officer David Mee said during an earnings conference call. “We saw our cost inflation becoming more normalized, and the bid season pricing is performing largely as we expected, though the range of pricing from beginning to end is wider than what we had originally anticipated.”
J.B. Hunt Transport Services Inc. ranks No. 4 on the Transport Topics Top 100 list of the largest for-hire carriers in North America. It also ranks No. 4 on the TT list of the 50 largest logistics companies in North America.