Hug Group 3Q Profit, Revenue Down But Tops Views
DOWNERS GROVE, Ill. (AP) ¿ Logistics company and trucking operator Hub Group Inc. said on Wednesday its profit dropped 41.9 percent as it struggled with the recession, but the results were ahead of analyst expectations.
The company said it earned $9.8 million, or 26 cents per share, for the quarter that ended Sept. 30. That was down from a profit of $16.9 million, or 45 cents per share, during the same period last year.
Analysts surveyed by Thomson Reuters were expecting a profit of 23 cents per share.
Revenue dropped 24 percent to $388.8 million, from $514.2 million a year ago. Analysts were expecting revenue of $372.2 million.Intermodal revenue fell 27 percent to $270 million, as volume fell 9 percent. Truck brokerage revenue fell 27 percent to $74 million. Logistics revenue rose 2 percent to $45 million. "We think that the third-quarter results were reasonable considering the economic environment," CEO David P. Yeager said in a statement. "During this downturn, we have focused on reducing our costs and believe that the efficiencies we have realized will continue to improve our competitive position as the economy recovers." Hub shares rose 47 cents to $26.50 in after-hours trading following the release of the results.
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