Profits for multi-modal freight transportation provider J.B. Hunt Transport Services fell a little more than 8% in the third quarter of the year despite increased revenue, with increased driver recruiting and retention costs part of the reason.
The Arkansas-based company reported net earnings of $100.4 million, or 91 cents per share, compared to $109.4 million a year earlier, or 97 cents per share. The per share performance in the most recent quarter was 5 cents less than analysts were expecting.
Total operating revenue for the third quarter was $1.84 billion, compared with $1.69 billion for the third quarter 2016.
Operating income for the current quarter totaled $165 million compared to $183 million for the third quarter 2016, primarily due to increases in driver wages and recruiting costs, increased rail purchase transportation rates, higher insurance and claims costs, increased legal and consulting costs, higher equipment maintenance costs and acquisition and integration costs incurred by its purchase of Special Logistics Dedicated (SLD) LLC that closed during the quarter.
The company's intermodal segment saw revenue increase 8% during the quarter to $1.05 billion, while operating income declined 7% to $109.1 million despite a 6% increase in overall freight volume.
The network disruption caused from hurricanes Harvey, Irma and Maria limited the company's ability to handle approximately 5,500 loads in the period, according to J.B. Hunt.
The period ended with approximately 87,000 units of trailing capacity and 5,500 power units assigned to the dray fleet.
J.B. Hunt's dedicated segment reported $438 million in revenue, up 11% from a year earlier, as operating income was $42.9 million, an 18% decline.
Productivity, measured as revenue per truck per week, increased by approximately 2% compared to the same time in 2016.
Increased revenue from better integration of assets between customer accounts and customer rate increases was partially offset by lower productivity at new contracts implemented during
