
Hub Group Inc. did something few other large publicly traded trucking operations have done in announcing earnings: It reported a slight decline in profits.
Hub Group Inc. did something few other large publicly traded trucking operations have done in announcing earnings: It reported a slight decline in profits.

Photo: Evan Lockridge

Hub Group Inc. did something few other large publicly traded trucking operations have done in announcing earnings: It reported a slight decline in profits.
Net income for the intermodal, truck brokerage and logistics services provider was $16.4 million for the fourth quarter of 2014, down from $16.5 million a year earlier. Diluted earnings per share were unchanged at 45 cents over the comparable time periods.
Revenue increased 3% to $915 million from $885 million a year earlier for the Illinois-based company.
Income for the year was $51.6 million compared to $69.1 in 2013. Diluted earnings per share for 2014 were $1.40 compared to $1.87 a year earlier.
Hub Group's revenue increased 6% to $3.6 billion from $3.4 billion in 2013.
“Like the rest of the industry, we continued to be challenged with rail service issues throughout the fourth quarter,” said CEO Dave Yeager on an investor conference call. “The service challenges created significant inefficiencies within our Intermodal network and while we do believe that rail service will incrementally improve near-term, it is not expected to become more normalized until the second half of the year. However, we continue to be very optimistic about the future of intermodal.”
The company’s Mark Yeager, vice chairman, president and chief operating officer noted that rail service has improved since hitting a low point in December, but is still below levels from a year ago.
“We also incurred unusually high maintenance and repair expenses associated with older tractors and rail-furnished chassis. Nonetheless, as a result of our efforts, we were able to maintain customer on-time performance above 90% throughout the quarter,” he said. “Rail service appears to have stabilized and late in the quarter, we were able to bring drivers home, terminate most of the expensive leased equipment, and get back into a more normalized maintenance and repair cycle. As discussed last quarter, we have a number of initiatives currently in place designed to lower cost, enhance execution and improve service.”

ACT Research data shows volumes hitting a four-year high and supply-demand balance strengthening, but higher oil prices are undercutting tariff relief and tempering optimism.
Read More →
The patent-pending cargo solution integrates a digitally connected cargo door and an intelligent locking system with the TrailerHawk.AI technology platform.
Read More →
The impact of the Iran conflict extends beyond fuel costs, bringing more fraud and cybersecurity risks to the trucking industry.
Read More →
Speaking at the TMC Annual Meeting in Nashville, ATA President Chris Spear said trucking faces mounting pressure from rising fuel prices, geopolitical instability, and uncertainty around trade policy.
Read More →
More than 100,000 new trucking companies enter the industry each year, but regulators manage to audit only a fraction of them. That churn creates opportunities for inexperienced startups — and for “chameleon carriers” that shut down after safety violations and reappear under new identities. Read more from Deborah Lockridge in this commentary.
Read More →
HDTX is an intimate event that connects heavy-duty trucking fleet managers with industry suppliers through small-group discussions, educational sessions, and structured one-on-one meetings.
Read More →
New DAT One feature shows top-paying loads directly on an iPhone’s home screen, helping carriers react faster to spot-market opportunities.
Read More →
Optimal Dynamics says its new Scale platform uses AI agents and optimization to help carriers find and secure freight that improves network balance and profitability.
Read More →
DAT Freight & Analytics data shows tightening flatbed capacity, easing produce markets, and softening van and reefer rates.
Read More →
NACFE's Run on Less - Messy Middle project demonstrates the power of data in helping to guide the future of alternative fuels and powertrains for heavy-duty trucks.
Read More →