Hub Group reports mixed Q1 results

Hub Group has announced its financial results for the quarter ended March 31, 2015. It reported revenue of $836m, a decrease of 1.5% compared to Q1 2014. The company also recorded operating income of $18.80m, a decrease of 8.30% year-on-year. Accordingly Hub Group’s operating margin stood at 2.25%.

Hub, one of the company’s logistics service segments, saw revenue decrease by 1.5% to $643m. This was largely the result of the intermodal operations, which saw revenue decrease by 3% to $421m. The decline resulted from a decrease in fuel revenue which could not be fully offset by a 1% increase in volume. During the quarter Unyson Logistics, a subsidiary, registered a 1% decrease in revenue to $133m. However truck brokerage revenue increased 6% to $89m and partially offset the decline registered in the quarter.

The Hub segment’s operating income was $13.7m, a decrease of 13.84%, this was largely the result of onetime costs in the form of a $1.4m Canadian currency translation loss and $0.9m of severance. Truck brokerage revenue increased 6% to $89m this quarter.

The company’s other logistics service segment, Mode, recorded a revenue increase of 2% to $214m. It also reported operating income of $5.1m, an increase of 11% compared to the prior year period.