LOWELL, Ark. — J.B. Hunt Transport Services reported revenue declines in most of segments for the first quarter ended March 31, although those declines were partially offset by its Final Mile Services segment, which showed revenue growth of 2% for the period.
Total operating revenues for the company were $2.94 billion, compared with $3.23 billion for the first quarter last year, a decrease of 9%. Net earnings for the company were $127.5 million, or $1.22 diluted earnings per share, compared with $197.8 million, or $1.89 per share, in the year-ago period.
Operating income also showed a 30% decline to $194.4 million vs. $277.5 million last year.
The company noted revenue decreases in both Intermodal (JBI) and Truckload (JBT) segments, 22% fewer loads in Integrated Capacity Solutions segment and a decline in average trucks and productivity in the Dedicated Contract Services segment. Final Mile Services got its boost primarily by new contracts implemented over the past year.
Net interest expense for the current quarter increased approximately 6% from first quarter 2023 due to higher effective interest rates and consolidated debt balance, partially offset by higher interest income. Also, the effective income tax rate increased to 28.7% in the current quarter compared with 24.7% in the first quarter 2023, due to discrete tax items.
At the end of the first quarter, J.B. Hunt had a total of $1.37 billion outstanding on various debt instruments compared with $1.58 billion at end of the previous quarter. With net capital expenditure for Q1 of approximately $166 million, the company ended the period with cash and cash equivalents of $64 million.
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