J.B. Hunt, based in Lowell, AR, said it modified the way it estimates ultimate losses relating to liability and workers' compensation claims. That accounting change added $10.2 million to its net earnings in the fourth quarter of 2001. Prior to that modification, J.B. Hunt said its fourth quarter 2001 earnings hovered at $8 million, a slight drop from the $10.9 million in earned in the fourth quarter of 2000.
Total operating revenue for the fourth quarter of 2001 rose to $545.5 million, compared with $534 million during the fourth quarter of 2000.
J.B. Hunt added that its accounting modifications in the fourth quarter of 2001 resulted in a $6.2 million decrease in workers' compensation, a $10.1 million decrease in insurance and claims expense and a $6.1 million increase in income tax expense. It also resulted in a restatement of its 1998 earnings: a $10.2 million decrease in retained earnings, a $16.3 million increase in claims payable and a $6.1 million increase in deferred tax assets.
J.B. Hunt said, however, that fourth quarter net earnings were reduced by $1.7 million because of losses sustained from a Mexican joint venture and its investment in online logistics operator Transplace. This compares with earnings of $1.2 million from those two ventures in the fourth quarter of 2000.
