Hub Group reports lowered earnings

OAK BROOK - Hub Group Inc. reported first quarter fiscal year net income of $62 million, and diluted earnings per share of $1.88. Net income for first quarter of fiscal year 2022 was $88 million, or $2.58 per diluted share.

"Although we are in a softer demand environment the $1.2 billion of revenue we generated in the quarter is the second highest first quarter revenue in the history of our company," said Phil Yeager, Hub Group's president and chief executive officer. "Our yield management, cost containment and operating efficiency initiatives resulted in operating income margin of 6.8% of revenue."

First quarter revenue was $1.2 billion, the logistics company said.

Hub Group said purchased transportation and warehousing costs declined as compared to prior year due to lower volumes, reductions in third-party carrier costs per load, and decreased use of third-party carriers. Those savings were partially offset by higher equipment and rail costs.

Salaries and benefits costs increased $9 million relative to prior year due to $28 million of incremental expense related to growth of its driver and warehouse employee hiring, partially offset by a $19 million reduction in office employee compensation due to lower staff and lower incentive compensation expense.