Third-party logistics company Hub Group said its second-quarter net income increased 162.4% compared to the same period in 2003 largely on the strength of its transportation businesses.
Hub said it earned net income of $4.1 million on 7.2% higher revenues of $338.5 million from its intermodal, trucking, brokerage, and logistics operations. Second quarter intermodal revenue increased 5.7% to $242.3 million due to an increase in volume, while truckload brokerage revenue increased 7.3% to $56.8 million due primarily to an increase in revenue per load. Second quarter logistics revenue increased 17.1% to $39.4 million due primarily to an increase in volume.
Only Hub Group Distribution Services (HGDS) revenue decreased, dropping 34% to $10.5 million in the second quarter compared to the same period last year as a result of lower installation business.
“Transportation-related gross margin dollar increases were offset by decreases in gross margin at HGDS,” said David Yeager, vice-chairman & CEO. “The change in gross margin as a percentage of revenue is primarily attributable to a decrease in the higher margin business of HGDS.”