Hub Group on Monday, Feb. 12, reported record income from continuing operations for the quarter ended Dec. 31 of $13.5 million, a 54 percent increase versus income from continuing operations for the fourth quarter of 2005. The Downers Grove, Ill.-based company said its operating margin increased to 5.2 percent in 2006 from 3.5 percent in 2005 due to yield enhancement efforts, improved operational efficiencies and growth in drayage and truck brokerage.
Hub Group’s revenue grew by 5.5 percent to $425.5 million compared to $403.2 million in the fourth quarter of 2005. Fourth-quarter intermodal revenue increased 1.6 percent to $307.1 million, which includes the addition of Comtrak for the entire quarter. Truck brokerage revenue increased 14.5 percent to $81.5 million this quarter. Fourth-quarter logistics revenue increased 24.2 percent to $36.9 million. Gross margin from continuing operations grew 27.8 percent to $58.2 million compared to the fourth quarter of 2005.
Revenue from continuing operations for the year was $1,609.5 million compared to $1,481.9 million in 2005, or an increase of 8.6 percent. Gross margin from continuing operations grew 25 percent to $218.4 million compared to 2005. Costs and expenses from continuing operations increased 11.3 percent in 2006 to $141.2 million compared to $126.8 million in 2005, due primarily to the Comtrak acquisition.
Income from continuing operations increased 63.5 percent to $47.7 million for 2006 compared to last year’s income from continuing operations of $29.2 million.
