Hub Group posts record 3Q income on lower revenue

user-gravatar

Hub Group on Monday, Oct. 22, reported record income for the quarter ended Sept. 30 of $16.6 million, a 23 percent increase versus income for the third quarter of 2006. Hub Group said its operating margin increased to 5.9 percent in 2007 from 5.1 percent in 2006 due to improved operational efficiencies and cost controls.

Hub Group said revenue decreased 3.3 percent to $417.8 million compared to $432.0 million in the third quarter of 2006. Third-quarter intermodal revenue decreased 4.9 percent to $303.3 million, which the company said was attributable to a 2 percent volume decline and a 3 percent decrease related to price and mix. Truck brokerage revenue was flat at $77.1 million this quarter, while third-quarter logistics revenue increased 4.1 percent to $37.4 million. Gross margin increased 0.3 percent to $57.5 million compared to the third quarter of 2006.

The Downers Grove, Ill.-based company also announced that it has terminated its acquisition of DNJ Transportation. The closing was expected to occur around the beginning of October but was subject to certain conditions and approvals; several of these conditions were not met, Hub said, and it elected not to proceed with the transaction.