Richardcyoung.com

The Online Home of Author and Investor, Dick Young

  • Home
  • How We Are Different
  • About Us
    • Foundation Principles
    • Contributors
  • Investing
    • You’ve Read The Last Issue of Intelligence Report, Now What?
  • Your Survival Guy
  • The Great Reset
  • COVID-19
  • My Rifles
  • Dividends and Compounding
  • Your Security
  • The Swiss Way
  • Dick Young
  • Debbie Young
  • Key West
  • Paris
  • Dick’s R&B Top 100
  • Liberty & Freedom Map
  • Bank Credit & Money
  • Your Survival Guy’s Super States
  • NNT & Cholesterol
  • Work to Make Money/Invest to Save Money
  • Your Health
  • Ron Paul
  • US Treasury Yield Curve: My Favorite Investor Tool

Is the Supply Chain Normalizing?

January 19, 2023 By The Editors

By Flystock @ Shutterstock.com

JB Hunt, one of America’s largest logistics companies has suggested to its investors that the logistics business is returning to normal, with seasonality once again becoming part of the business. For years logistics companies have operated at full capacity year-round. Now, what had traditionally been a seasonal business looks to be returning to that model. Paul Page reports in The Wall Street Journal:

Trucking and logistics giant J.B. Hunt Transport Services Inc. expects freight demand to regain traction in the coming months as the pandemic-driven upheaval in supply chains fades and companies return to more conventional ordering cycles.

“We have had good signals from our customers about Q2 starting up back to a more normalized or having a more normal environment,” J.B. Hunt President Shelley Simpson said in an earnings conference call Wednesday.

“We are not sure at what point that is in Q2,” she said, according to a FactSet transcript of the earnings call. “But we do feel like the back half of the year we have confidence from what our customers are giving us in the data points that they have, what they are going to be doing from an ordering perspective.”

Slowing shipping demand helped push fourth-quarter profit at J.B. Hunt down 17% from the same quarter the year before and revenue growth fell short of expectations as retailers pulled back on inventory restocking and consumer spending sagged during the traditional shopping season heading into the holidays.

Operating revenues at the freight bellwether rose 4% in the last three months of 2022 over the year before to $3.65 billion, the company said Wednesday, but freight-related revenues excluding fuel surcharges were off about 3% from the fourth quarter of 2021.

Fourth-quarter earnings per share of $1.92 were short of analyst expectations of $2.44 per share.

Operating income in the Lowell, Ark.-based company’s intermodal segment, which moves goods in a combined truck and rail transport, fell 8% to $179 million as declining volumes and higher labor, maintenance and insurance costs offset an 11% increase in revenue.

“Demand for intermodal capacity was seasonally weaker than normal, as peak season activityleading up to the holidays was absent this year,” Darren Field, president of intermodal at J.B. Hunt, said in the earnings call. He said volumes weakened sequentially during the fourth quarter, with volumes up 4% in October before falling 3% in November and 5% in December.

Shares were up 4.2% to $183.69 in afternoon trading Wednesday.

The steepest revenue decline came in J.B. Hunt’s Integrated Capacity Solutions unit, which matches freight loads to trucks. Revenue at the freight brokerage operation fell 33% from the previous year’s fourth quarter on sharply lower volumes and the business reported a $2.9 million operating loss.

Company executives declined to provide earnings guidance for the rest of 2023 but said they expected what they called an “inventory correction” to fade and that retailers and manufacturers would soon start ordering goods for the summer and fall.

“We haven’t seen seasonality over the better part of the last two or three years, just based on elevated demand levels that we’ve seen,” Brad Delco, J.B. Hunt’s senior vice president of finance, said on the earnings call. “Clearly, seasonality has come back into play.”

 

If you’re willing to fight for Main Street America, click here to sign up for the Richardcyoung.com free weekly email.

Related Posts

  • TUCKER EXPLAINS: How Bill Clinton and #EmptyShelvesJoe Created America's Supply Chain Crisis
  • How to Resist Technocrats Dismantling the Global Food Supply Chain
  • Coronavirus: The Safety of America's Food Supply Chain
  • A Supply-Sider in France: Alain Juppé
  • Author
  • Recent Posts
The Editors
Latest posts by The Editors (see all)
  • The Man Who Tried to Prevent the Challenger Space Shuttle Disaster - January 30, 2023
  • Ukraine Front Lines Increasingly Bloody - January 30, 2023
  • Is Diesel Fuel About to Become Even More Expensive? - January 30, 2023

Dick Young’s Must Reads

  • “The Great Object Is that Every Man Be Armed”
  • WAR HAS BEGUN: What Advice Are You Giving Your Loved Ones?
  • Who Is Alex Jones?
  • Your Survival Guy Prefers Bombardier’s Global Express 7500
  • Tucker Carlson Interviews My Favorite Florida Farmer
  • Democracy: The Most Dangerous and Insidious Effect of Majority Rule.
  • BEYOND RUSSIA: America Strengthens India Ties to Counter China
  • My Smith & Wesson Revolvers Home Defense Team
  • You Need to Seek Some Shelter for When Things Get Ugly
  • Warning! Your Survival Guy’s on a Boil Water Advisory

Our Most Popular Posts

  • Pfizer CEO Terrified of Real Questions About His Vaccines
  • Give Me Clean, Efficient Gas
  • America's Super States and Stocks that Respect YOU
  • How the Biden Administration Is Destroying Our Energy Infrastructure
  • The Rich Seek More from Bank Accounts
  • Artificial Intelligence Is Coming, But It's Not Quite There
  • Is Kevin McCarthy’s GOP Willing to Do What It Takes on Debt?
  • The Sound of Silence
  • Forty Years Ago, Jogging a Mile a Day and Still Going
  • Strengthen Your Defenses Against Stroke

Disclosure

RSS Youngresearch.com

  • CATO: Global Freedom Is in Sharp Decline
  • Biden Administration Destroying Retiree Fiduciary Protections
  • 4 Life Changing Words for Your Survival Guy: “You Should Try This”
  • Suddenly, Holding Cash Looks Good Again to Many
  • Anti-Carbon Crusaders in Davos Talk ESG and OPM
  • Is Passive Investing Already Passé?
  • Welcome to Hotel California, Where You Can Never Leave
  • What You’re Telling Me Matters
  • Can Banks Compete with Apple Pay and PayPal?
  • America’s Super States and Stocks that Respect YOU

RSS Yoursurvivalguy.com

  • Warren Miller: If You Don’t Do It This Year, You’ll Be…
  • CATO: Global Freedom Is in Sharp Decline
  • TIME FOR A GONDOLA? Little Cottonwood Canyon Jammed with Traffic
  • Biden Administration Destroying Retiree Fiduciary Protections
  • 4 Life Changing Words for Your Survival Guy: “You Should Try This”
  • Anti-Carbon Crusaders in Davos Talk ESG and OPM
  • Welcome to Hotel California, Where You Can Never Leave
  • What You’re Telling Me Matters
  • The Rich Seek More from Bank Accounts
  • California’s Wealth Tax Will Drive Out Remaining Rich Residents

How to Fight Wokism Idiocy

Despite Western Aid the Russians Are Slowly Taking Ukraine’s Territory

Warren Miller: If You Don’t Do It This Year, You’ll Be…

The Man Who Tried to Prevent the Challenger Space Shuttle Disaster

Ukraine Front Lines Increasingly Bloody

Is Diesel Fuel About to Become Even More Expensive?

Copyright © 2023 | Terms & Conditions | About Us | Dick Young | Archives