Hub Group Inc. reported record diluted earnings per share for the quarter ended Sept. 30 of $0.45, an increase of 7 percent compared to last year’s third quarter diluted earnings per share of $0.42. Earnings per share for the third quarter of 2007 included a one-time $1.2 million tax benefit or $0.03 per share; excluding this benefit, earnings per share increased 15 percent this quarter. Hub Group’s operating income for the third quarter was $27.3 million, a 10 percent increase versus operating income for the third quarter of 2007.
Hub Group’s revenue increased 23 percent to $514.2 million compared to $417.8 million in the third quarter of 2007. Third quarter intermodal revenue increased 22 percent to $369.7 million, an increase the company attributed to a 9 percent volume increase and a 13 percent increase in pricing, related primarily to fuel. Truck brokerage revenue was up 29 percent to $101.2 million this quarter. Third quarter logistics revenue increased 20 percent to $43.3 million. Gross margin increased by 10 percent or $5.7 million to $63.2 million compared to the third quarter of 2007.
“We are pleased with our performance in the third quarter,” said David Yeager, vice chairman and chief executive officer of Downers Grove, Ill.-based Hub Group. “Strong intermodal volume growth contributed to the highest third quarter earnings per share in the company’s history. Our asset-light business model continues to give us the ability to perform well in both strong and weak freight markets.”