Segment Information:

Intermodal (JBI)
  • Fourth quarter 2012 Segment Revenue: $821 million; up 13%
  • Fourth quarter 2012 Operating Income: $104.2 million; up 24%

JBI revenue for the period grew 13% on volumes that increased 11% over the fourth quarter 2011. Eastern network loads increased 15% and transcontinental growth showed a 9% improvement during the quarter. Eastern network load growth moderated from a year ago due to a combination of factors including Hurricane Sandy, the closing of some rail service lanes and the loss of some incumbent business. Revenue per load, the combination of traffic mix, customer rate increases and changes in fuel surcharge revenue, increased 1.9% from the same period in 2011.

Operating income for the quarter grew 24%. Fourth quarter 2011 results include an approximate $2.8 million expense due to severance and charitable commitments. Improved network balance yielded positive results in container utilization, dray fleet utilization and a lower percentage of empty reposition moves. Cost increases in both rail and dray purchased transportation, driver wages and insurance and claims partially offset the improvements in productivity. The current period ended with approximately 59,000 units of trailing capacity and approximately 3,600 power units in the dray fleet.

Dedicated Contract Services (DCS)
  • Fourth quarter 2012 Segment Revenue: $284 million; up 9%
  • Fourth quarter 2012 Operating Income: $29.4 million; up 7%

DCS revenue increased 9% during the current quarter vs. 2011, while revenue, excluding fuel surcharges, increased 8%. The increase in revenue primarily resulted from 335 net additional revenue producing trucks, mostly due to converting customers’ private fleets. Productivity (revenue per truck per week) was up 1% compared with the fourth quarter 2011.

Operating income increased 7% vs. same quarter 2011. Fourth quarter 2011 results include an approximate $0.6 million expense due to severance and charitable commitments. The increase in operating income is primarily related to a higher truck count and improved productivity, but was partially offset by increases in insurance and claims expense, driver wages and employee health insurance expense.

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