LOWELL, Ark. – Major road and intermodal carrier J.B. Hunt Transport Services reported third-quarter revenue of $2.47 billion, a 4.5% increase compared with the same period in 2019.
Revenue performance was primarily driven by a 25% increase in revenue per load in Integrated Capacity Solutions segment, a 34% increase in the number of stops in Final Mile Services, a 9% increase in loads in Dedicated Contract Services and a 14% increase in loads in the Truckload segment. A 5% decrease in revenue per load in the Intermodal segment and 32% decline in fuel surcharge revenue partially offset those increases.
Third-quarter total operating revenue, excluding fuel surcharges, increased 9% compared with the same prior-year quarter.
Net income of $125.5 million for the three months ended Sept. 30 was 5.7% more than in last year’s third quarter. Third-quarter 2019 included pre-tax charges of $44.2 million related to arbitration with BNSF Railway Co., including legal and interest charges.
Operating income for the third-quarter totaled $175.5 million vs. $167.9 million for third-quarter 2019. Excluding the BNSF-related charges in last year’s period, operating income decreased 17% from third quarter 2019 primarily from increased rail purchase transportation costs, lower gross margins in Integrated Contract Solutions, increases in driver wages and recruiting costs, increased third-party and company dray costs, and continued investments in technology spend on new applications and legacy operating systems.
The Intermodal segment saw third quarter 2020 revenue off 2% to $1.21 billion; down 2%, reflecting a 5% decline in revenue per load, partially offset by 2% load growth, which is the combination of mix, customer rates, and fuel surcharges.
Dedicated Contract Services third-quarter revenue increased 1% to $553 million compared with the same period in 2019.
Integrated Capacity Solutions, a non-asset based offering of dry van, flatbed, refrigerated, expedited and LTL services, saw third-quarter revenue jump 28% to $431 million, with volumes up 2% and revenue per load up 25% due to customer freight mix changes and higher contractual and spot rates compared with third-quarter 2019.
Final Miles Services revenue increased 22% to $182 million compared with third-quarter 2019. Stop count increased 34% vs. a year ago, primarily from the December 2019 acquisition of RDI Last Mile Co. and the addition of multiple customer contracts implemented throughout 2020.
Truckload revenue increased 16% to $109 million from the same period in 2019. Revenue excluding fuel surcharge revenue increased 19%, primarily from a 14% increase in load count and a 5% increase in revenue per load excluding fuel surcharge revenue compared to a year ago.
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