Third-party logistics specialist Hub Group Inc. saw its revenues decline 7.6% in the second quarter of 2001, pushing its net income down as well.
Hub Group said its revenues decreased to $318.0 million from $344.3 million in the second quarter of 2000, with intermodal revenue declining 12.4% to $217.0 million from $247.7 million. Approximately $15.9 million or 52% of the decrease in intermodal revenue from the prior year is related to a reduction in domestic intermodal work performed for steamship lines, the company said.
Brokerage revenues also declined 7.5% to $49.5 million from $53.4 million, but logistics revenues increased 19.4% from $43.2 million to $51.6 million. The two components of logistics, Hub Group Distribution Services (HGDS) and the company's supply chain solutions services, reported revenue growth of 3.4% and 56.9%, respectively.
Because of the increase in logistics business, the Hub Group’s gross margin increased 1.7% to $45.3 million from $44.6 million. However, the company took a charge in April related to a systems communications software application, which resulted in pre-tax excess depreciation of $600,000.
Taking into account the excess depreciation charge, net income decreased to $1.1 million from $2.3 million last year and earnings per share decreased to 14 cents per share from 30 cents.