Hub Group posts lower 1Q profit

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Hub Group Inc. last week reported income for the first quarter ended March 31 of $6.2 million, down from $13.1 million during the year-ago period. Revenue decreased 17 percent to $352 million compared to $425 million.

Intermodal revenue decreased 19 percent to $246 million; the company attributed the decrease to a 5 percent volume decrease and a 14 percent decrease related mostly to fuel. Truck brokerage revenue decreased 24 percent to $68 million. Logistics revenue increased 18 percent to $38 million.

Hub Group said it generated $29 million of cash flow from operations and ended the quarter with $113 million in cash.

“We are pleased that we have been able to maintain our market share and generate strong cash flow, despite the challenging freight market,” said David P. Yeager, chairman and chief executive officer of Hub Group, based in Downers Grove, Ill. “We remain focused on providing excellent service to our customers as we drive multiple initiatives to improve efficiency and increase productivity. We are confident that we have the right strategy and team to weather this current economic downturn and thrive when conditions improve.”