Hub Group reports record 2Q earnings

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Hub Group Inc. on Thursday, July 19, reported record income from continuing operations for the quarter ended June 30 of $13.8 million, a 13 percent increase versus income from continuing operations for the second quarter of 2006. Hub Group’s operating margin increased to 5.5 percent in 2007 from 5.0 percent in 2006 due to yield enhancement efforts and improved operational efficiencies, including in-house drayage.

The Downers Grove, Ill.-based company’s revenue increased 1.6 percent to $401.6 million compared to $395.3 million in the second quarter of 2006. Second-quarter intermodal revenue increased 5.2 percent to $300.9 million. Truck brokerage revenue decreased 6.3 percent to $73.2 million this quarter. Second-quarter logistics revenue decreased 12.2 percent to $27.5 million. Gross margin from continuing operations increased 4.1 percent to $57.8 million compared to the second quarter of 2006.