JB Hunt 3Q profit tumbles on weak rates

JB Hunt 3rd-quarter profit falls by one-third, weighed down by ongoing 'freight recession'

• On 5:47 pm EDT, Monday October 19, 2009

LOWELL, Ark. (AP) -- J.B. Hunt Transportation Services Inc. said Monday its third-quarter profit fell 34 percent as lower freight rates continued to weigh on the trucking company.

J.B. Hunt said it earned $40 million, or 31 cents per share, in the three months ended Sept. 30. It earned $60.3 million, or 47 cents per share, in the year-ago period.

Revenue fell 16 percent to $833.7 million as fuel surcharge revenue plunged 59 percent to $93.1 million during the quarter due to sharply lower gas prices.

"The freight recession that began in the second half of 2006 continued into its third year," President and CEO Kirk Thompson said in a statement. The company said it lowered costs in most categories but the reduced expenses didn't offset the significant drop in freight rates.

The results still beat Wall Street estimates. Analysts polled by Thomson Reuters had expected earnings of 28 cents per share on $804.7 million in revenue, on average.

The company said it has noted some recent signs of firming demand, but said the freight economy remains weak and no rapid improvement is anticipated.

"Until freight rates start to return to a reasonable level, margins are unlikely to improve dramatically," Thompson said.

The stock gained 2 cents to close regular trading at $33.93, and is up 29 percent since the start of the year.

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