Landstar reports record 1Q revenue, net income

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Landstar System reported revenue rose 21 percent to a record $610 million in the 2006 first quarter from $502 million in the 2005 first quarter. Net income for the 2006 first quarter was a record $24.4 million, compared to net income of $16.8 million for the 2005 first quarter. Operating margin was 6.8 percent in the 2006 first quarter compared to 5.7 percent in the 2005 first quarter.

Landstar’s carrier group of companies generated $428 million of revenue in the 2006 first quarter, compared with revenue of $371 million in the 2005 first quarter. In the 2006 and 2005 first quarters, the carrier group invoiced customers $33.8 million and $20.6 million, respectively, of fuel surcharges that were passed on 100 percent to business capacity owners and excluded from revenue. Revenue at Landstar Global Logistics was $173 million in the 2006 first quarter compared with $124 million in the 2005 first quarter. The 2006 and 2005 first quarter for Landstar Global Logistics included about $35 million and $7 million of revenue, respectively, from disaster relief services provided under a contract between Landstar Express America and the U.S. Department of Transportation and Federal Aviation Administration.

“Landstar’s 2006 first-quarter performance was the best first quarter operating performance in its history,” says Henry Gerkens, president and chief executive officer of the Jacksonville, Fla.-based company. “Consolidated revenue increased by 21 percent, and diluted earnings per share increased 52 percent. Both revenue and earnings were the highest first-quarter amounts in Landstar history. This increase reflected strong revenue growth at the carrier segment of 15 percent and a 40 percent increase in revenue at Landstar Global Logistics. On a consolidated basis, revenue generated through BCOs increased 9 percent, truck brokerage revenue increased 34 percent and rail intermodal revenue increased 44 percent. In addition to strong revenue growth, we continue to improve our operating margin, which increased 116 basis points compared to the 2005 first quarter to 6.8 percent.”

Demand for Landstar’s services remains strong, Gerkens says. “Based upon the continuation of the current operating environment, I would anticipate revenue growth for the 2006 second quarter to be within a range of 16 to 20 percent compared to the 2005 second quarter,” he says.