J.B. Hunt's 3Q Income Declines on Rail Arbitration Charge

.B. Hunt Transport Services on Friday reported that its third-quarter net income fell to $39.8 million or 25 cents a share, from $47.9 million or 29 cents a year earlier.

The earnings were affected by a previously announced $25.8 million, 10-cents a share charge taken in an arbitration ruling with BNSF Railway Co., the company said in a statement.

Operating income fell to $65.1 million from $82.7 million a year earlier. The company said that excluding the arbitration charge, operating income would have increased to $90.9 million.

Truckload segment revenue rose 3% over last year, while intermodal segment revenue increased 8%, both excluding fuel surcharges.

J.B. Hunt cited high fuel prices and diesel-refining capacity from recent hurricanes as concerns and said that “driver and independent contractor availability continues to be a serious concern for the [truckload] segment, as well as the industry.”

“Continued cost increases from railroads are driving the need to raise rates to our intermodal customers,” the company said.

J.B. Hunt is ranked No. 11 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.