J. B. Hunt Transport Services Reports Revenues and Earnings for Q2 2001

    LOWELL, Ark.--July 16, 2001--J. B. Hunt Transport Services, Inc., announced second quarter 2001 net earnings of $8.6 million, or diluted earnings per share of 24 cents, compared with 2000 second quarter earnings of $11.1 million, or 31 cents per diluted share. The current quarter's diluted earnings per share of 24 cents were up significantly from the 5 cents per diluted share earned during the first quarter of 2001. Included in the earnings for the second quarter of 2000 was approximately 12 cents per share earned by the Logistics segment. This compares with a loss of approximately one cent per share, which the Company recognized during the current quarter under the equity method of accounting for Transplace.com, the successor logistics business.
    Total consolidated revenue for the second quarter of 2001 was $521 million, compared with $584 million during the second quarter of 2000. The lower revenue reflects the previously announced contribution of all of the Company's non-asset based logistics business to the jointly owned logistics company, Transplace.com. Adjusted for this logistics business, which was contributed effective July 1, 2000, the Company's revenue growth for the second quarter of 2001 was approximately 8%. While the Company shares approximately 27% of Transplace.com's net results of operations, all logistics revenue has been excluded from the Company's financial statements subsequent to June 30, 2000. During the second quarter of 2001, revenues of the Company's Truck segment grew 4%, while Intermodal segment revenue rose 8% over the comparable period of 2000. Dedicated segment revenue increased 14% during the current quarter.
    Earnings during the second quarter of 2001 were negatively impacted by continued soft economic conditions. However, freight demand did improve during the second quarter of 2001 from levels experienced in the first quarter of 2001. The operating leverage and corresponding impact on the Company's earnings from the improving Truck segment allowed earnings per share to exceed previous estimates. Load volume in the Truck segment was up approximately 6% in the current quarter, compared with 2000 and grew nearly 7% from the first quarter of 2001. While the number of Company owned tractors in the Truck segment fleet was essentially flat with last year, the addition of independent contractors contributed to a nearly 5% growth in the size of the overall Truck business fleet. The Truck segment was also able to generate operating income of nearly $2.9 million during the current quarter, compared with a loss of $3.3 million in 2000. This represents the first sub-100% operating ratio in the Truck segment since the Company began reporting Truck separately from Intermodal and reflects progress in the Company's efforts to return the truckload business to profitability. Loads in the Intermodal segment were up approximately 6% in the second quarter of 2001 over 2000, but were down slightly from the first quarter of 2001. The Dedicated tractor fleet increased approximately 19% during the current quarter, but a decline in revenue per tractor, compared to 2000, negatively impacted revenue growth in the segment. While fuel prices during the current quarter increased only slightly from the first quarter of 2001, fuel cost per gallon was still above year 2000 levels. The Company has been able to recover substantially all of its increased fuel costs through revenue surcharges.
    Total consolidated revenue for the six months ended June 30, 2001 was $1.017 billion, compared with $1.117 billion for the first six months of 2000. Revenue growth for 2001 was 9%, adjusted for the Logistics segment business, which was contributed to Transplace.com. Truck segment business increased 2% during the current six months, while Intermodal grew 10%. Dedicated segment revenue rose 22% in 2001, compared with the first six months of 2000. Net earnings for the first six months of 2001 totaled $10.2 million, or 29 cents per diluted share, compared with $16.1 million, or 45 cents per diluted share in 2000.
    Load volume in the Truck segment was up approximately 3% during the first six months of 2001, compared with the same period of 2000. The Truck business fleet grew 4% in 2001 over 2000, but a slight decline in miles and revenue per tractor limited revenue growth. The Truck segment generated an operating loss of $359,000 for the first half of 2001, compared with a loss of $3.5 million in the comparable period of 2000. Loads in the Intermodal segment grew nearly 7% for the first half of 2001 over 2000. Rates in the Intermodal business have remained essentially flat for nearly two years. Average tractors operated in the Dedicated fleet were up approximately 26% in 2001. Dedicated revenue per tractor declined about 3% during the first half of 2001.
    In spite of relatively soft economic conditions, pricing in the Truck and Dedicated segments remained firm. Truck segment rates, excluding fuel surcharges, were up approximately 1.7% during the first six months of 2001. Cost increases were experienced in the areas of driver compensation, insurance and worker's compensation. These cost increases necessitate continued rate increases.