J.B. Hunt: Boost in Intermodal Business
J.B. Hunt Transport Services, one of the largest transportation companies in North America, reported increased profits in the third quarter as demand grew for transporting shipping containers.
The company reported third-quarter earnings of $115.1 million, surpassing Wall Street expectations. It posted revenue of $1.59 billion in the period, here also missing Street forecasts. Seven analysts surveyed by Zacks expected $1.62 billion.
Profits were driven by improving margins in the company’s intermodal unit, which transports shipping containers and makes up a majority of the company’s revenue, says a report in WSJ.
The growth in intermodal shipping has been driven by increased freight rates and lower maintenance costs.
The Intermodal (JBI) division reported quarterly revenues of $948.8 million, down 1.5% year over year. Segmental results were hurt by the lingering effects of disruptive shipping patterns following the West Coast port disturbances.
The results are a bright spot amid uncertainty among companies that focus on truckload freight services, which means they typically fill their trucks with goods from just one shipper, rather than several customers.
