Hub Group reported higher revenue and profits in the first quarter of 2018 with growth coming from intermodal, logistics and dedicated contract carriage operations.
The Oak Brook, Ill.-based company earned $16.2 million, or 48 cents a share, in the three months ended March 31, compared with $10.3 million, or 31 cents a share, in the same period a year ago. Total revenue grew 23% to $1.1 billion in 2018 from $892.8 million in 2017.
Hub Group’s intermodal business increased 14% to $482.5 million, reflecting a 6% increase in loads, higher prices and fuel surcharge revenue. Hub’s truck brokerage revenue increased 13% to $120 million, although the business handled 1% fewer loads in the first quarter of 2018 compared with a year ago.
Revenue for Unyson Logistics, which provides transportation management and supply chain consulting services, climbed 16% to $168.7 million with growth coming from new and existing customers, the company reported.
Hub Group Dedicated, a business formed after the acquisition of Estenson Logistics in 2017, generated revenue of $60 million in the first quarter. That was better than revenue of $57.1 million in the fourth quarter and a sign of things to come as company officials said the unit has won more than $70 million in new business this year.
Mode Transportation, a Hub Group subsidiary that provides truck brokerage and intermodal services, generated revenue of $287.9 million in the first quarter, up 19% from $241.8 million a year ago.
Looking ahead, Hub Group CEO Dave Yeager said earnings for the year are expected to be in the range of $2.34 to $2.44 a share.
“Strong revenue and margin growth in the first quarter, driven by a healthy intermodal pricing environment, spot opportunities and new dedicated business, position us well for a successful year,” Yeager commented in a statement April 26.
Hub Group ranks No. 8 on the Transport Topics Top 100 list of largest for-hire carriers in North America and No. 33 on the Transport Topics Top 50 logistics companies.