J.B. Hunt Transport Services, Inc. Reports Earnings For The Second Quarter 2012

Operating income increased 22% over prior year. Benefits from steady demand, overall load growth and lower office personnel compensation costs were partially offset by increases in outsourced drayage costs, rail purchase transportation costs, fleet maintenance costs and driver wages. The current period ended with 56,000 units of trailing capacity and 3,440 power units available to the dray fleet.

Dedicated Contract Services (DCS)

• Second Quarter 2012 Segment Revenue: $267 million; up 1%
• Second Quarter 2012 Operating Income: $33.2 million; up 21%

DCS revenue increased 1% during the current quarter while revenue excluding fuel surcharges also increased 1%. Productivity (revenue per truck per week) decreased slightly vs. 2011. New accounts provided a net additional 235 revenue producing trucks by the end of the quarter, with the majority of the increase coming late in the quarter.

Operating income increased by 21% from a year ago. The increase, primarily due to the transfer of assets to more profitable accounts and the decline in fuel costs throughout the quarter, was partially offset from higher safety costs, higher toll road charges and increased maintenance costs compared to 2011.

Truck (JBT)

• Second Quarter 2012 Segment Revenue: $126 million; down 3%
• Second Quarter 2012 Operating Income: $ 8.8 million; up 27%

JBT revenue for the current quarter decreased 3% from the same period in 2011. Revenue excluding fuel surcharges, also decreased 3%. Rates per mile, excluding fuel surcharge increased 3.2%. Rates from consistent shippers improved 2.5% compared to the same quarter a year ago. At the end of the period, JBT operated 2,396 tractors compared to 2,508 a year ago.

Operating income increased 27% compared to 2011. Favorable changes in freight mix, strong seasonal spot pricing, steadily declining fuel costs and improvements in fuel efficiency were partially offset by increases in driver wages, independent contractor costs, lower utilization and higher empty miles compared to second quarter 2011.

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