- First Quarter 2012 Segment Revenue: $694 million; up 20%
- First Quarter 2012 Operating Income: $79.4 million; up 27%
Steady first quarter demand drove load growth of 16% over the prior year. Higher fuel prices and tighter capacity in the truck market contributed to our Eastern network growth of 28%. Transcontinental growth was 9% compared to prior year. Overall revenue grew 20% as a result of the volume growth, fuel surcharge recovery and a 3% increase in rates.
Operating income increased 27% over prior year. Cost increases in fuel, dray costs and dray purchase transportation were offset with steady demand, consistent rail service, improved execution on dray movements and customer price increases. The current period ended with approximately 54,800 units of trailing capacity and more than 3,250 power units available to the dray fleet.
Dedicated Contract Services (DCS)
- First Quarter 2012 Segment Revenue: $256 million; up 7%
- First Quarter 2012 Operating Income: $28.1 million; up 51%
DCS revenue increased 7% during the current quarter while revenue excluding fuel surcharges increased 5%. Productivity, defined as revenue per truck per week excluding fuel surcharges, increased 2% vs. 2011 and new accounts provided a net additional 149 revenue producing trucks by the end of the quarter.
Operating income increased by 51% from a year ago primarily due to the increase in revenue, productivity gains, lower safety expenses and the transfer of assets to more profitable accounts. DCS had a $1.6 million charge in the first quarter 2011 related to a customer bankruptcy.
- First Quarter 2012 Segment Revenue: $128 million; up 8%
- First Quarter 2012 Operating Income: $4.9 million; down 16%
JBT revenue increased 8% from the same quarter 2011. Excluding fuel surcharges, revenue for the current quarter increased by 4%. Rate per loaded mile, excluding fuel surcharges, increased 2.1% over the same period last year but was unfavorably impacted by weaker spot pricing and fewer paid empty miles. Rates from consistent shippers improved year-over-year by 2.6%. At the end of the current quarter our tractor count was 2,561 compared to 2,497 in 2011 due to an increase in the use of independent contractors.