J.B. Hunt's total operating revenue for the first quarter of 2009 totaled $723 million, down 18% from the $878 million figure from 2008. According to J.B. Hunt, lower fuel surcharge revenues were accountable for the drop in revenue, revealing significantly lower fuel costs in 2009. Although diesel prices have been increasing the past two weeks, the current average cost for diesel in the U.S. is down 45% compared with 2008 ($2.229/gal vs. $4.050/gal).
The Intermodal and Dedicated Contract Services segments account for 79% of J.B. Hunt's total revenues, according to CEO and company president Kirk Thompson. Intermodal revenue from January through March 2009 totaled $391 million, while DCS revenue stood at $179 million. Both revenue totals are down 10% and 21%, respectively.
J.B. Hunt's trucking segment, which has been hurting from both external and internal factors, realized a 45% drop in revenue to $102 million. The big drop in revenue took an operating loss of $5.8 million. Operating income from the Intermodal segment was $41.3 million (down 20%), while the DCS total was $17.4 million (down 5%).
Compared with 2008, J.B. Hunt has run 373 fewer trucks within the first three months of the year. As the recession continues, the truck fleet is expected to continue to reduce in size in order to lower maintenance costs and meet customer demand levels.