diff --git a/src/main/java/org/jboss/logmanager/formatters/FormatStringParser.java b/src/main/java/org/jboss/logmanager/formatters/FormatStringParser.java
index 31ec3e06..b2d956b5 100644
--- a/src/main/java/org/jboss/logmanager/formatters/FormatStringParser.java
+++ b/src/main/java/org/jboss/logmanager/formatters/FormatStringParser.java
@@ -107,7 +107,7 @@ public static FormatStep[] getSteps(final String formatString, ColorMap colors)
                         break;
                     }
                     case 'h': {
-                        stepList.add(Formatters.hostnameFormatStep(leftJustify, minimumWidth, truncateBeginning, maximumWidth, argument == null ? "1" : argument));
+                        stepList.add(Formatters.hostnameFormatStep(leftJustify, minimumWidth, truncateBeginning, maximumWidth, false));
                         break;
                     }
                     case 'H': {
diff --git a/src/main/java/org/jboss/logmanager/formatters/Formatters.java b/src/main/java/org/jboss/logmanager/formatters/Formatters.java
index b21083de..0f02ebea 100644
--- a/src/main/java/org/jboss/logmanager/formatters/Formatters.java
+++ b/src/main/java/org/jboss/logmanager/formatters/Formatters.java
@@ -471,7 +471,13 @@ public void renderRaw(final StringBuilder builder, final ExtLogRecord record) {
      * @return the format step
      */
     public static FormatStep hostnameFormatStep(final boolean leftJustify, final int minimumWidth, final boolean truncateBeginning, final int maximumWidth, final boolean qualified) {
-        return hostnameFormatStep(leftJustify, minimumWidth, truncateBeginning, maximumWidth, qualified ? null : "1");
+        return qualified ? hostnameFormatStep(leftJustify, minimumWidth, truncateBeginning, maximumWidth, null) : new SegmentedFormatStep(leftJustify, minimumWidth, truncateBeginning, maximumWidth, null) {
+            public String getSegmentedSubject(final ExtLogRecord record) {
+                final String hostName = record.getHostName();
+                final int idx = hostName.indexOf('.');
+                return idx == -1 ? hostName :hostName.substring(0, idx);
+            }
+        };
     }
 
     /**